A Financing Alternative For Business Owners

Unsecured Lines of Credit are an excellent financing alternative that business owners can utilize to replace their frozen home equity lines of credit. These lines of credit will be more advantageous than business loans because, like credit cards, interest is paid only on the outstanding balance. With two years in business and a 680 or above credit score, business owners qualify for up to $1 million with full documentation. Applications can be approved for up to $350,000 with no documentation.
Unsecured Lines of Credit can be obtained in roughly 4 to 6 weeks but should never be applied for directly by the borrowers themselves. The borrower, although qualified, cannot simply walk into a lending institution or bank for an unsecured line of credit and automatically be approved. Companies that specialize in unsecured lines of credit are available and should be contacted to assist with the substantial preparation that is necessary. Professional business finance consulting firms maintain contacts and affiliations with lending institutions that offer unsecured lines of credit. It is extremely important that the business owner work with one of these firms instead of approaching the bank directly. 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. Despite the fact that they paid high fees for the availability of home equity lines of credit, even business owners with excellent credit scores and excess equity in their properties are finding it impossible to access their credit lines. 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 result is that expected funds for business uses are not available, although they are still very necessary. 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. Many business owners routinely paid back their lines of credit so that those funds are available for them to use at some pre-determined time in the future. 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, a graduate of Wharton Business School, is a business financing consultant with twenty-four years as a specialist in financial services. He is currently a Founder and Managing Member of Nationwide Equipment Leasing LLC, an equipment leasing company that also offers Unsecured Lines of Credit as one component of its Business Financial Products Suite. His company focuses on providing solutions that help business owners overcome the obstacles created by the current economic and financial crisis in the United States. He can be reached at 800-395-4908. Request a free copy of his Special Report, "The Solution: Unsecured Line of Credit" from http://www.neleasing.com/application-form.cfm by selecting Unsecured Line of Credit Information.
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