Successful businesses need money to grow and prosper. So, while your business may be making enough to meet payroll and fund operations, if you want to expand, upgrade your equipment, move to a larger space, or you are in need of working capital to tide you over, you usually need an outside source of funding.

Fortunately there are a variety of strategies and sources of funding that today’s businesses can use to meet their financial needs. These sources of funding include

• Business Lines of Credit
• Equipment Leasing
• Business Credit Cards
• Credit Card Receipt Advances
• Factoring of Accounts Payable
• SBA Loans
• Real Estate Mortgages
• Auto Loans

Whew! How is a business person to know which source is best for their particular situation, and then where to go, to get the financing? We regularly advise our clients on these questions, and in this article I am going to discuss the most versatile and useful of all funding:

The Unsecured Business Line of Credit

Why is an unsecured business line of credit the most useful kind of financing for most businesses? Because:

1) It’s unsecured, meaning the business or business owner does not have to provide collateral for the loan. Most of the other sources require collateral in the form of real property or attachment of your income stream.

2) It’s a revolving credit account –qualify for it once, and use it many times. Borrow up to the amount of the line any time you like. Pay it back, and borrow against any balance remaining in the line

3) It’s simple – once approved, you can borrow funds just by writing a check. No paperwork, forms or phone calls.

4) You only pay interest on what you borrow, so your interest charges are minimized.

5) You can use the money for any purpose whatsoever. There is no oversight or review.

6) The credit line and the debt service don’t show up on your personal credit report

7) You can negotiate both the interest rate and the amount of the credit.

It’s really the “holy grail” of business financing.

To see how you can qualify for one, click here.