How to Build Unsecured Lines of Credit

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To build unsecured lines of credit, accrue a small amount of credit card debt and make timely payments, and have the government help you to become a guarantor. Build unsecured lines of credit for a company with information from a financial manager and currency trader in this free video on finance.

Part of the Video Series: Credit Information & Tips
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Video Transcript

I'm Roger Groh. We're here today to talk about how to build unsecured lines of credit for your company. Well, think small first, meaning go out and get a credit card for your company and borrow a little bit of money -- 100 dollars, 200 dollars -- and make the payments on time. Sounds silly, but it will help you tremendously in terms of the credit rating instances going forward because, in fact, if the banks feel comfortable that you can pay back and you have a history of paying back on time, they'll give you money with no collateral. The other way to do it would be to have the government help you become a guarantor. Now, you don't care if the government's a guarantor. You just care if you're the guarantor. So you know, the SBA's a wonderful way to do that where 90...typically 90 percent of the financing will come from the bank, and 10 percent will come from the government. The government will then guarantee the 90 percent back. There are lots of loan programs for startup businesses, small businesses, that involve tax credits that will also get you to the same place. So A, start with city hall in your local town. B, start with the state government in the department of finance and ask, "Are there any state programs available for when you go to borrow money that they will help you on an unsecured basis?" That's how you start building unsecured lines of credit for your company. I'm Roger Groh.


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