Are Unsecured Business Credit Line Drying Up?

With many of our country’s banks and financial institutions in trouble, an unsecured business credit line is becoming harder to obtain for many small businesses. An unsecured business credit line allows small businesses to make purchases for inventory and other need equipment and supplies with a revolving credit line without the need to have the credit line secured by any sort of collateral. These credit lines work much like a credit card account because they require minimum monthly payments – but not payment all at once.

Unsecured Business Credit Line Shortages

In the wake of the financial sector crisis, many banks have increased needed requirements for businesses to qualify for secure business credit lines. Furthermore, some banks have discontinued their business credit lines altogether. However, there are still business credit lines available for businesses that have a proven track record of good payment and a good credit history.

While some banks are making it harder for businesses to be approved for unsecured business credit lines, most banks are still offering credit lines for businesses when those lines are guaranteed by the owner. If the business owner has good credit, a business will almost always qualify for various types of credit lines.