An unsecured line of credit loan is extended by banks or other types of lenders. The amount of the credit line offered is based solely on the credit worthiness of the company and does not require a personal guarantee.

Unlike a secured loan such as a mortgage or car loan where the real estate or automobile are used to secure the loan, no collateral is required for these lines of credit.

Even though unsecured business lines of credit have been in existence for many years, it still comes as a surprise to many small business owners that the program exists or that their company can even qualify.

A common question we are asked is “why should banks make unsecured line of credit loans?” The answer is simple, Banks and other lenders are already making unsecured lines of credit to you as an individual. Why shouldn’t they offer a commercial program?

Almost every American carries at least one Visa, MasterCard or American Express credit card in their wallet or purse. If you carry more than one, which is not uncommon, the total of all the credit limits on all the cards is your total line of credit.

The credit cards and the limits on each are issued to you based on your credit worthiness as an individual and are totally unsecured. Therefore, it makes good business sense to offer an unsecured credit line program to corporations. In fact, corporations could be viewed as more stable than an individual and are more likely to use the lines more frequently.

Our business line of credit program operates just like your personal Visa, MasterCard or American Express. The credit cards come in the corporate name and can be used for any business finance purpose.

The first line of credit you will receive through our program will be a Platinum Visa credit card from Bank of America. This generally has a credit limit of $10,000 but may vary based on the credit score of the business owner. Other lines will follow from Chase, Discover, American Express, Wells Fargo and Business Credit Express from Bank of America.

Unlike a regular bank loan, but just like your personal credit cards, you only pay on what you use. This gives your business access to capital when you need it.