Compound Profit Blog

Unsecured financing is an excellent option for a small business that needs to borrow money without a credit check. The loans must be paid back in a shorter time frame and do require a higher interest rate than secured loans. You have easy access to the money for emergency situations and do not need to use your home or business as collateral. There are very high interest rates on these loans because they are very risky to the lenders. Some lenders may not get their money back until after the liquidation sale of your business because there is no collateral required for the loan and you do not need to risk your home or business building with a lien on your property. You will however, have a financial obligation to repay the loan amount.

If your company is doing well, then an unsecured loan could allow you to improve your small business to a better level of profit. The unsecured loans are a handy tool if the banks will not extend you any more regular credit on your business. Many small businesses need to have more money, especially when they are growing. You may be able to service more customers, but simply not be able to finance the additional equipment that is needed for more production. The unsecured loans usually need to be paid back in a number of months or perhaps a very few years but if you believe that you will make more in profit during that time than you will spend on the unsecured loan, then the loans could be a good choice for you.

Even with a bad credit rating, you could receive unsecured financing that could protect your small business. You might not have the money that you need to repair a service truck that you use to replace gutters with your small business, so for you, having an unsecured loan would allow you to fix your truck and continue installing gutters. Without that truck, your business could be closed. Those unsecured loans do offer an option for the small business owner that may not be able to survive without getting the high risk loans but lenders do charge higher interest rates because there is a high risk of having to go to court for their money if the borrower can not repay the loan. However, with unsecured financing, you could stay in business and protect your investments.

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The business financing companies have become more and more inventive, offering several business financing options that don’t require any collateral and streamlining the process, making it much easier to get access to funding when compared with the rules and regulations imposed by the traditional lenders. The reason for this is obvious: the alternative financing companies know that the banks don’t want to risk any of their money these days, so most of them are welcoming the clients who were turned down by the banks.

The current economical climate has made quite a few businesses shut down for good; nevertheless, the very same economical climate has helped other companies seize new opportunities and grow. No matter if you are struggling or thriving, getting access to a consistent funding source which allows you to purchase a new piece of equipment or to increase your inventory could be just that breath of fresh air that would help your company become profitable, or, if you are running an already profitable business, would help you grow much faster.

The good news is that getting business loans without any collateral or other assets is much easier these days; if your personal FICO score is good, you should be able to qualify for a business loan without too much effort. The amount of money that can be obtained through an unsecured business loan starts with a few thousand dollars and can easily exceed $100,000, provided that you have an established business with a proven credit history. Also, having good credit and debit card sales records will show the lender that your company is trustworthy, thus increasing your chances to get the loan.

The interest rates depend on your past credit history, so make sure to prepare for the loan by paying all your clients on time. Don’t worry about repaying the loan, though; most lenders will make sure to get small amounts of money from your credit account until the entire loan is paid pack, so you won’t have to worry about forgetting to pay the business financing company.

Compound Profit offers unsecured business loans and credit lines for companies of any size, so make sure to contact us for a complimentary consultation.

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Everyone knows it: having a bad business credit score will affect your company. As a result of this, you might not be able to get credit from neither the banks, nor the alternative financing solution providers. And if you don’t have a backing funding source, you are jeopardizing your company’s future in case that something goes wrong.

If this sounds like your story, I’ve got some good news: you can still get funding using several financing instruments, like unsecured and secured credit cards. With secured credit cards, you will need a security deposit in your bank account, which must be placed before you start using the card; this is the way in which you guarantee that you will repay the lending company. Secured credit cards will have a credit limit that depends on your account balance most of the time; this means that you won’t be able to make large purchases of goods whenever you want to.

In contrast, unsecured credit cards offer you the ability to purchase the needed merchandise without using any collateral; it’s true that the interest rates are higher and the late penalty fees are greater, because the lender takes on a much higher risk. Nevertheless, many business owners use this financing instrument, which offers them a greater spending freedom. I’ll have to admit that this type of funding isn’t for everyone, though; poor cash management can lead to greater and greater debt and can even paralyze your business.

So how do you choose the best credit card for your business? It all comes down to whether you are going to be able to pay your debt on time or not. Since your business credit score isn’t great, you could choose an unsecured credit card, but do this only if you are confident that you’ll be able to pay you debt in time; otherwise, the late fee penalties will make your business credit value drown for sure. Still, this is one of the best financing ideas if your business relies on purchasing large quantities of goods, provided that these activities produce a significant amount of profit which allows you to pay all the expenses, as well as the lender.

If you are a small company owner and don’t want to take on the risk of damaging your credit history records, a secured credit card is a better option because it helps you avoid the late payment fees. One way or the other, the most important piece of advice that I can give is to manage your finances with great care. Cash is a precious resource and our advisors, which have an average of 25 years of business financing experience, are here to help you. Contact us for your complimentary consultation.

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It’s sad, but true: most business owners will have to face cash flow problems at some point. And the math behind this is very simple: you’ll have more cash going out and less cash coming into your business. If this bad situation lasts for several months, this might be the end of your company, especially if your business needs to purchase goods in large quantities on a monthly basis.

So how do you prepare for such unpleasant events? Many entrepreneurs are using unsecured business credit lines as their financial safety nets. An unsecured credit line is a business financing method that allows you to have access to cash without using any collateral. As you can imagine, having access to a business credit line can help your company a lot, especially when you (temporarily) lack the needed funds that would allow your company to run its operations.

This financing instrument will definitely come in handy if your company needs to make large purchases in order to bring in profit, but lacks the needed working capital. Other business owners will be attracted by the idea of having access to funds without risking their company’s (or personal) assets. And as an added benefit, the interest rate is usually lower when compared with the financing offered by business credit cards.

In fact, some of the business owners choose to apply for unsecured credit lines even if their companies are in perfect shape; this gives them peace of mind, because they know that they’ve got a backing cash source that can be used if their company has to face unforeseen circumstances.

Getting an unsecured credit line isn’t an instant process; due to the special characteristics of this financing instrument, the lenders will want to check your business’ credit history – they take a greater risk by giving you the money, because you don’t offer them any collateral. If you plan to apply for an unsecured business credit line, the most important thing is to maintain a good business credit score, making all your payments in time.

While you can’t tell if / when your company will have cash flow problems, having access to an unsecured line of credit will lift quite a bit of pressure off your mind. Contact us for a free consultation; our highly trained Profit Advisors will help you get a custom funding solution that will act as a strong financial safety net.

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Many business owners could make use of credit lines these days; it’s a known fact that as a company gets bigger, it needs more funds in order to produce more profit and a credit line can be a very effective source of financing.

Some of the company owners are wondering what credit lines to use, though, because the offer is quite big. We will concentrate our attention on two of the most used financing instruments that have proven to be very efficient for the companies, regardless of their size: business credit cards and unsecured credit lines.

Most companies decide to use business credit cards when they’re just starting out; nevertheless, some of the business financing companies have come up with business credit cards offers that are suited for most needs, such as MerchantCard, which doesn’t require any collateral. The entrepreneurs prefer to use business credit cards because they offer flexible terms, can be obtained quite easily even if you don’t have long-term credit records and are accepted by the majority of vendors.

It’s true that most credit card companies will require a personal liability agreement, though, so your company’s credit report might mix with your personal credit score. A good idea would be to separate your company credit from your personal credit for good using a good business credit builder program; as an alternative, you could also try and get a credit card that doesn’t require a personal liability agreement.

With established companies, it’s a good idea to have access to big credit lines, especially if your business has the potential to grow fast and the lack of funds prevents it from doing that. An unsecured credit line offers better terms, having lower interest rates and higher credit limits most of the time. You will need to have a good business credit history, though, but as you already know, this problem can be fixed in about 4 months using Compound Profit’s advanced business credit builder system.

As a conclusion, a business credit card might be the ideal financing option for the companies that are just starting up; as the time passes and your business grows, you will have the option of getting money through an unsecured credit line, provided that your business credit records look good. Since most businesses report that they aren’t able to grow because they lack the needed capital, Compound Profit creates custom financing options for companies of any size. Contact us for a free consultation and you will get a free business analysis review.

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It’s sad, but unfortunately this happens quite often: small businesses can experience cash flow problems from time to time. In fact, some of the business owners will take the time to stop and think about what’s happening with their companies, noticing that they aren’t actually making any profit out of it because their expenses have grown too much, while their sales have decreased substantially.

Under these conditions, having access to financial resources while the company is being restructured is the key factor that allows any business to survive, especially if they rely on purchasing large amounts of goods or services in order to make profit and thus propel the company out of crisis. Fortunately, an unsecured business line of credit will solve these problems and can be obtained without going through too much trouble.

But let’s start with the beginning: what is an unsecured line of credit? The answer is straightforward: it’s a financing instrument that gives your business the needed funds without requiring any collateral. It’s a great opportunity to get access to money, especially if your company has cash flow problems, because it gives you access to a cash source that will allow your company to continue to run, being able to produce profit and thus helping itself get out of debt.

Who should apply for an unsecured line of credit? I’d say that any business owner who needs financing for his / her upcoming purchases and can’t afford to risk the precious company resources and assets using them as collateral. And the good news doesn’t stop here: most unsecured credit lines come with decent interest rates and big credit limits, so they can actually help most companies stay afloat even during tough economical times.

Thinking about applying for an unsecured business credit line? Your company’s credit score will play an important part; the lenders will want to make sure that they aren’t simply throwing their money away - they will want to know if your company can repay the loan on time (or not). In fact, getting access to an unsecured business credit line (even if you don’t need it right away!) is a wise thing, because this will give you an additional financing source that will either help you pass through the more difficult periods easily or will give you the means to grow your company much faster.

Compound Profit can help any business grow its credit score fast using its highly acclaimed business credit builder and offers unsecured business credit lines that are tailored for each business owner’s needs. Contact us for more information and you will get a complimentary consultation.

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Many company owners were hit hard by the crisis and thus have lower business credit scores these days. Sadly, the consequences are clearly visible: these entrepreneurs have much fewer business financing options when compared with what they had only a few years ago, when the banks used to like them quite a bit.

A low business credit score will make it difficult to get the needed funds, even though these funds can make all the difference, allowing your company to grow. And not having a backing source of financing is some of the worst things that can happen to a struggling business.

So what are the available options for a business owner which has a less than perfect business credit score? We’re mainly dealing with two big categories here: unsecured business financing and secured business financing.

While each financing instrument has its own particularities, there are some general principles that can be applied for all of them. Let’s take the business credit cards as an example; a secured business credit card will only work if the business owner has placed a security deposit in the bank before starting to use the card. The banking institution takes a lower risk this way, but most of the times the entrepreneur won’t be able to make purchases that have bigger values, which exceed the business credit card balance.

An unsecured business credit card will allow the business owner to get financing without using any collateral, but since the risk taken by the lender is much greater, the interest rates are usually bigger and the penalties for late payments increase as well. Nevertheless, if you can live with these limitations by investing the money wisely and by avoiding the late payment penalties, you will discover that the unsecured funding offers a far greater flexibility.

What is the best business financing option then: secured or unsecured? If your business is profitable, or at least seeing the light at the end of the tunnel, then you should be able to pay the lender without delaying the process, so an unsecured business funding option might work wonders, because it offers you the freedom to invest more money into the profit-producing areas of your business, such as purchasing larger amounts of products at a great discount. On the other hand, if your business isn’t doing that well, you should stay away from the higher interest rates that are usually associated with unsecured business funding.

As a conclusion, if your business is doing OK and produces profit, you shouldn’t ignore the freedom given by the unsecured business financing options. Contact us for a complimentary consultation; our advisors will help you discover the best financing instrument that fits your particular funding needs.

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