Planning for an Unsecured Business Line of Credit

Last Updated August 24 2009 16:03:44.

One of the most important areas of any business is sufficient access to capital when you need it. A recent client reminded me of this with a situation they encountered. The client’s company sells products for restaurants. They are less then a year old and have spent the last several months presenting their product line to restaurant chains across the country in hopes they will land a “big fish,” or big account.

My comment to them was: “What happens when you do sign a contract with a large restaurant chain? Will you have enough money to produce the product to fulfill the order from them?” Currently, the largest order they have received was 1,000 of one product. When a large chain restaurant decides to move on something, they will look for up to 40,000 – 100,000 on one order. To produce that much product, they have to have access to funds to produce it, and then wait 60-180 days to get paid from the client. That is very typical of large companies paying the small entrepreneur.

Unsecured Business Line of Credit Qualifications

The best possible solution for someone in this client’s position, or one similar, is to get the money BEFORE you need it. Have a line of credit established for the business to use when either a large contract comes in, a great opportunity arises, or potentially a time to buy out a competitor. What ever the reason, make sure you have the cash ready. Our loan department can assist you with a line of credit if you qualify. Minimum qualifications for an unsecured business line of credit are a personal FICO score of 650 or better and at least 6 months in business. Please visit our unsecured business line of credit department’s website and learn more about your FICO score.

Source: David Gass, President & CEO, Business Credit Services, Inc. Business Credit Services, Inc. specializes in helping businesses build business credit and establish an excellent corporate credit history. Download their free booklet How to Build Business Credit at http://corporatecredit.biz

Original Article: Planning for an Unsecured Business Line of Credit published at http://corporatecredit.biz

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