Unsecured Lines of Credit are available for individuals
that own businesses and have credit scores of 680 and
above. Business owners who have been in business for more
than two years are eligible for lines of credit up to $1
million with full documentation of personal and business
taxes and financials. Applications without additional
documentation (No Doc Applications) can also be approved
for as much as $350,000. These lines of credit essentially
function like Home Equity Lines of Credit because interest
is paid only on the outstanding balance.
Unsecured Lines of Credit can be obtained in roughly 4 to 6
weeks but should never be applied for directly by the
borrowers themselves. Being qualified does not mean that
these borrowers are capable of simply walking into a bank
or other lending institution and being approved.
Substantial preparation is necessary and this should only
be done through companies that specialize in the desired
type of business financing. It is highly recommended that
the business owner seek out a professional business finance
consulting firm with contacts and affiliations with several
banks and financial institutions that offer these programs.
The application process is somewhat complicated and
documentation must be properly formatted and compiled to
avoid unnecessary rejections.
Business owners can no longer rely on the equity in their
real estate holdings to finance their business expansions
and growth. Even business owners with perfect credit scores
and excess equity in their properties are finding it
impossible to exercise their rights to these credit lines
they paid significant fees to obtain. The main reason is
that banks have virtually stopped providing homeowners
access to the equity in their properties as lines of
credit. Home Equity Lines of Credit have been frozen by
most major lenders because declining property values have
made these cutbacks necessary. IndyMac, Washington Mutual
and other major mortgage lenders have made decisions to
rescind these credit lines, according to the terms of their
contracts with borrowers.
Business owners have been especially hard-hit by these
recent eliminations of their access to funds for their
businesses. Many of them have used home equity lines for
working capital during slow periods or as sources for cash
during periods of expansion. The net effect is that the
necessary funds for business uses were expected but are not
available. The lack of time to make other arrangements
because of this sudden policy change can severely impact a
business owner's ability to survive a shortage of funds.
There are also business owners who paid back their credit
lines in the anticipation that they would be able to
utilize them again. That option is no longer available,
leaving them without their usual funds.
In summary, Unsecured Business Lines of Credit are methods
of financing that are still available to qualified
borrowers who are also business owners. Firms that
specialize in acquiring unsecured lines of credit should
always be involved in this application process. The
applicant will need assistance in properly preparing and
organizing his documentation for submission to lenders. A
firm that specializes in this type of financing will be
able to present the borrower as the "perfect applicant"
because its business is to assure that all aspects of the
application adhere to the current credit, submission and
underwriting guidelines of each individual bank. This very
important initial step in the process will greatly enhance
the business owner's potential to be successfully approved
for an unsecured line of credit.
----------------------------------------------------
Milton Franklin, is a Founder of Nationwide Equipment
Leasing LLC, an equipment leasing company that also offers
Unsecured Business Lines of Credit. His company provides
solutions to the current financial crisis in the U.S. He
can be reached at 800-395-4908. Go to
http://neleasing.com/application-form.cfm and request
Unsecured Line of Credit Information to receive a free copy
of his Special Report,
"The Solution: Unsecured Line of Credit".
No comments:
Post a Comment