Unsecured Business Lines of Credit

It can be difficult to secure financing without some form of collateral, especially when you are starting a new business. According to the U.S. Small Business Administration, 65% of small businesses use credit cards to keep their fledgling business afloat. However, 50% of these cards are personal credit cards that put the personal credit and financial health of the business owner at risk. Starting and growing a small business is a risky venture and it is important to protect your personal finances from the risks associated with business spending.

Additionally, cash flow issues may stymie growth of your business, but going all out to get a small business loan can be a big step that not every entrepreneur is willing or even qualified to take. The stopgap measure is to obtain a business credit card.

Who needs a business credit card?

Even businesses with one or two employees should have business credit cards for business expenditures. A business credit card can give you access to capital to pay your bills and free up cash for the business.

At LaGray Finance, we understand the difficulties that startups face and the cash flow issues encountered by a growing business. If you have a good FICO credit rating we can help you get immediate access to capital with unsecured business credit cards.

What is the difference between a secured and unsecured business credit card?

If you do not have a stellar credit history, then you may only be qualified for a secured business credit card that is typically used to build or rebuild credit. It requires a security deposit that is less than or equal to the credit limit. Over time, with a good payment history, you get your deposit back and upgrade to an unsecured credit card.

An unsecured business credit card is a standard credit card that does not require a deposit or personal guarantee. You don’t need any collateral because your credit limit is based on your personal credit profile and the profitability of your business. The card works the same way as a personal credit card and has minimum monthly payments to keep you under your limit, and you
can pay off all outstanding balances to make more credit available.

What are the benefits of an unsecured business credit card?

  • The credit card can be used for a wide variety of business purposes
  • You have short term funding that frees up your cash flow
  • It is great for start-ups, as you have access to funds to deal with unexpected expenditure
  • It helps you keep personal and business finances separate and protect your personal credit
  • It is easier to qualify for than a traditional business loan
  • You get approved and funded in as little as two weeks

What are the fees and interest rates?

Interest rates depend on the line of credit and your FICO score. In most cases, we can offer 0% introductory rates to our clients for at least six months.

How much credit can I get?

Depending on your FICO score, the size of your company and its history, credit lines would range from $25,000 to $250,000. This is a revolving line of credit and remains available for as long as you make payments on time and stay below your credit limit.

Eligibility Checklist

1. Do you have a minimum FICO Credit score of 700?
2. Do you have a minimum personal gross income of $3,500 per month as evidenced by tax
returns or pay stubs?
3. Do you have current credit lines with less than 50% utilization?

If you answered ‘Yes’ to all or most of the questions, please contact us to get the process started.

Why LaGray Finance

We are partnered with lending institutions nationwide and we have the expertise to connect your business to the best financing products available. LaGray Finance can get you the highest credit limit, lowest rate and much faster funding than you can get on your own.