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Published By Credit Suite at November 30th, 2015
Due to our vast array of funding products available to our clients, people commonly ask us which is better for them. So, is it secured or unsecured funding?
Well, it depends.
Secured funding is easier to get approval for. Even if you have credit issues, you can still get many types of secured funding.
This is because secured funding is using something as collateral for the funding you are receiving.
When you own a business there are many business assets you can use as collateral to get funding. So, you have choices when it comes to how to secure funding.
Equipment financing for example leverages your equipment as collateral for the debt.
Purchase order financing uses your purchase orders as collateral, while account receivable factoring uses your receivables as collateral.
You can also use real estate, revenue, and other business assets. So, you can use them to qualify for specialized funding vehicles to help you get money fast.
And since these financing options are using an element of your business as security, your personal or business credit doesn’t have to be great to qualify. It could be the perfect choice if your personal or business credit is less than stellar.
If you do have good credit with a score of 650 or higher, then great! You should qualify for unsecured funding options also.
Unsecured funding is where the bank will lend you money or approve you for a credit line with no security required.
This means you will not need to leverage any aspect of your business as collateral. The lender will base the lending decision on the quality of your personal or business credit profile.
You can use either your personal or business credit profiles to get an approval.
With even a 650 personal credit score or higher you can qualify for these kinds of unsecured funding options.
And with a good business credit profile built you can also qualify for large amounts of business funding.
Through our business funding suite you have access to credit lines up to $150,000. And these are unsecured forms of funding. And they require NO financials to qualify.
You also have access to credit lines up to $250,000 if you do want to supply financials. These are unsecured credit lines. And you use no business assets as collateral to qualify.
Interest rates on unsecured debts are obviously higher than secured debts as the lender’s risk is higher.
Still, you can get good working capital loans and credit lines at very reasonable interest rates and payments. And you can do so easily, without worrying about securing anything.