How to Get an Unsecured Business Line of Credit

When a business is starting out, money is going to be a issue. Your name isn't quite out there, and customers are hard to come by. Cash flow is an issue in this trying time and this is when unsecured lines of credit can help small business owners.

Difficulty: Moderate

Instructions

Things You'll Need:

• Income tax returns
• Business license
• Articles of incorporation
• Bank statements
• Financial statements

1. Get pre-qualified for a unsecured line of credit. This is the first step to getting approved. You may be asked for your business history and income on your application.

2. Provide the lender with income tax returns for the last two years as well as personal income taxes for the last two years. They check this information to verify your personal and business income, as well as all debts.

3. Give the lender any legal documents that make the business legitimate, such as a business license or articles of incorporation.

4. Turn in the bank statements for the past three months. This is done to see if the money you do have is being spent responsibly.

5. Send the lender the financial statements for the business for the year-to-date. This is done to monitor the overall state of cash flows, income, and debts of the business.

Tips & Warnings

• A good credit score is needed to get an unsecured line of credit. A FICO score of at least 640 is required to be even considered for credit.

Who Can Help:

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Resources

• Find out your FICO Score