There are two types of Business Lines of Credit offered in the marketplace; Unsecured and Secured
- Unsecured Lines of Credit require good credit, but do not require business financials, nor collateral. They are completely dependent on the credit of the business borrower. They are effective for both start-up and established businesses. They provide working capital and keep personal and business credit separate.
More information on unsecured business lines of credit can be found here.
- Secured Lines of Credit are different because they are “secured” by one or more of the assets of the business.
The good news is there are a lot of different business assets that can be secured or collateralized to unlock the cash trapped in your business. With secured business lines of credit, the value of the asset is more important than credit rating and cash flow of the business. This allows the credit requirements to be less stringent.
Account Receivables are an asset of your business. If someone owes you money we can provide you financing based upon what you are owed. Then when they pay you, we get paid back. For more information on unlocking cash using Account Receivable Financing, click here.
Purchase Orders are also and asset of your business. You can secure financing using your Purchase Orders as collateral. You can get the money you need to fulfill those large customer orders while not subjecting your business to a cash crunch. For more information on Purchase Order Financing, click here.
Your equipment is an asset of your company and can be used to secure the working capital you need. Even old equipment that has been fully amortized has value that can be used a collateral. There are tax advantages to equipment financing as well. For more information on equipment financing, click here.
The inventory of your business is an asset and can be used to secure a working capital loan. For additional information on loans secured by your inventory call or contact one of our experts to discuss this option.
Lastly, your business checking account is an asset of your business. Business owners can use the amount of money flowing through their business checking accounts on a monthly basis as collateral. These cash-flow based loans are easy to get approved and quick to get you the money you need. For more information on loans secured by your deposits, click here.
Some business may have all the assets listed above, while some may only have one. Regardless, the experts at Boathouse Commercial Funding Group know precisely the best way to get you the money you need with the best terms possible. Call or contact us today.