How Your Small Business Can Get a Business Line of Credit
Building business credit takes time, but it’s something that is necessary if you want your small business to stay afloat. You’ll never know when you’re going to need extra funds for your business, so here is what you will need to do to obtain an unsecured line of credit.
Register with Business Credit Agencies
Registering with the major business credit agencies is a must for any companies that need unsecured lines of credit. These agencies include Bradstreet, Equifax, and Experian. Registration with these credit agencies is free, so get started with them sooner rather than later.
Maintain a Good Bank History
Credit agencies look at your company’s bank history, so keep all of your bank accounts in good standing with consistent minimum balances and deposits. Try to develop a good professional relationship with your bank’s branch manager or business banker while you’re at it.
Apply for Credit Cards or Arrange to be Billed by Vendors
Applying for credit cards and cell phone plans is a good way to build up credit, as is arranging to be billed by vendors for supplies. Make sure you pay all of your bills on time.
Write a Specific Business Plan
Any business plan you write should clearly state what your business does and why it might need unsecured lines of credit. Even though this technically isn’t necessary, it does suggest a higher level of professionalism that looks great to lenders and business partners. Be as concise and transparent as possible whenever you present this plan to a potential lender.
Meet with an Alternative Lender
Once you have a plan in place and you have a solid credit history, it’s time to meet with an alternative lender to apply for your line of credit. Provide all the necessary documentation, and mention your strong credit history whenever applicable.
Obtaining an unsecured line of credit is not an easy task, but it is a necessary one if you are having difficulty obtaining the funds to keep your small business up and running. For more tips on how unsecured lines of credit can be used by businesses of all kinds, contact TriHawk Capital today.
