When it comes time to request additional funds from any bank, it is imperative for a business owner to know the difference between secured and unsecured financing. There are major benefits if an owner knows how to get one funding over the other. For example, when a bank issues a secured line of credit, they will normally lend you money based upon what assets your business or you own personally. They will also look at your business plan and your credit history both business and personal. To the contrary, a bank offering you an unsecured business credit line, offers you much more of an advantage. There is no collateral attached to the note and in most cases this type of credit line or loan can be stated income with little or no documentation required. This second type of business loan is not the easiest to attain. In fact, unless you have an impeccable credit history or know the banker personally, most business owners, especially new ones will be turned down better than 93 percent of the time. That is why an owner must do his or her diligence and prepare for such a request of financing. If approved, the money can be use for practically anything ranging from payroll to buying new equipment to expanding one's business to investing. If you are a start-up or new business, most banks will not offer you such unsecured business credit lines. But that is not to say that banks do not have programs for small start-up business loans. You have to ask and do the necessary research before applying for such business funds. A word of caution: If you do get approved for such a loan, be sure to use it wisely. Most banks can review your terms periodically and if you in any way break the lending agreement, they can and most certainly cancel or revoke said credit line. I would like to say with much enthusiasm that as with any business venture, all terms and conditions can be negotiated and at times in the borrowers favor. There are a few banks, 15 that I know personally that will give you unsecured business credit lines in the value of $20,000 to $50,000 with no credit checks all with stated income. And yes, these are legal lending agreements from some of the top lending institutions in the United States. I would invite you to take a closer look at an amazing banking system that has been around for decades that help business owners just like you and me to ascertain business funding for start-ups, expansion, real estate and stock market investments.
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