Short answer: An unsecured business line of credit doesn’t require you to put up specific collateral like real estate, equipment or inventory. Instead, approval is based mostly on your business’s revenue and bank statements.
Secured vs. unsecured
A secured line is backed by specific assets the lender can claim if you don’t pay. Banks often ask for real estate, equipment or receivables.
An unsecured line isn’t tied to a specific asset. That makes it faster to set up and easier for businesses that don’t own much property.
What funders look at instead
- Monthly revenue and deposits
- Time in business
- Bank account health, like average balance and overdrafts
- Existing debt payments
Want to see what your business qualifies for? Answer a few quick questions or call (888) 707-0202.
Read the agreement carefully
Even without specific collateral, your agreement may include terms like a personal guarantee or a general business lien. A good funding advisor will explain exactly what you’re signing.
Who it’s a good fit for
Service businesses, restaurants, contractors and anyone who doesn’t want to put their home or equipment on the line to get working capital.
Flex Credit Capital’s approach
We don’t require collateral for our lines of credit. We focus on how your business is doing and walk you through every term before you sign.
