Think credit card when you think of unsecured business credit, because this is what this type of business financing is. Whether an actual credit card or a line of credit upon which you can draw, there are many advantages to the unsecured funding, including not having to back the monies up with your business or personal assets. No collateral means you keep your business even if you default on the credit line. Here are some other pros.
- In Case of Emergency
Even the most established companies face emergencies, and they must draw from backup resources to fund their operating cash flow needs. Businesses that have a source of unsecured credit can keep their doors open regardless of the extenuating circumstances. Emergencies come in all shapes and sizes, from fire to theft to inclement weather, and unsecured business credit gives you a cash resource when your traditional money-making sources have been interrupted.
- In the Best Interest of Your Books
Depending on your financer, you will find tremendous flexibility when it comes time to pay back your unsecured credit. This works well on your books, and if you’re a publicly-traded company, you know how important your books are to your investors. Whether you want to pay back the credit line slowly to keep your profit margin a little higher, or pay it back right away to get it off your ledger, unsecured business credit offers flexibility that traditional loans do not.
- In Your Business’ Best Interest
Getting your business on the map is the only way you’ll be successful, and it takes money to do that. With unsecured financing, you build up your business credit score as you remit the funds you draw. This helps you when it’s time to research future borrowing opportunities to grow your business or open a new one. Establishing your credit worthiness helps you maintain a position in your market way above your competitors, which is the fun part of owning your own shop.
It doesn’t matter if you’re just starting out, looking to expand your operation, or in need of cash flow due to an unexpected emergency, unsecured business credit works well to fund your needs and maintain your financial stability. You didn’t open your doors to fail, so don’t let something as simple as an unanticipated cash flow need stop your company’s progress. There are plenty of lenders ready to issue you a line of credit to ensure your success, so take advantage of this type of funding today.