If you are a business owner, you should not wait until you actually need financing, to prepare yourself for eligibility. It can be difficult to obtain an unsecured line of credit, so you need to position your business right away, in order to have the best chance for approval.
Here are the steps you should take to prepare yourself for eligibility for an unsecured line of credit.
Making your business eligible for an unsecured line of credit
The first thing you need to do is register your business with the major credit agencies, so they’re aware that you’re making your vendor payments promptly. In the normal conduct of your business, make sure to maintain a favorable bank history with regular deposits and minimum balances, and avoid over-drawing your checking account. You should also apply for business credit cards and cellphones to be used for business purposes, and make all these payments on time as well, so that positive reports reach the business credit agencies.
Next steps for eligibility
Next, you should prepare a thorough business plan which fully describes what your company does, and the reason you need an unsecured line of credit. Maintain the utmost level of professionalism in the conduct of your business, and especially when you meet with your lender to apply for an unsecured line of credit. Since your lender will have access to all the credit reports as well as your bank history, he/she will know that you have done your best to pay all bills promptly and maintain low debt balances. Make sure to point out all these positive factors when you meet with your lender to discuss obtaining an unsecured line of credit.
Lines of credit with IRC Commercial Lending
Would your business benefit by having an unsecured line of credit? Contact us at IRC Commercial Lending to find out if you’re eligible, and to discuss all your options for obtaining the financing you need to keep your business running smoothly.