Small Business Line of Credit: How to Choose the Right Option

Small Business Line of Credit: How to Choose the Right Option

Small Business Line of Credit: How to Choose the Right Option

This article was originally written on August 8, 2018 and updated on January 8, 2024.

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17 responses to “Small Business Line of Credit: How to Choose the Right Option

  1. Hello, I am building business credit, I have +6 NET 30 great standing account, but I am kind of confused, basically for the first business Loan I get I will have to Personal Guarantee it ?.
    Or as I get the best Business credit score I won’t have to PG it?.

    Also in any of the cases we will always have to add collateral for the first loan? Are there Unsecured Businesses Loans without business collateral as Machinery, cash, and so on?

    Thank you.

    1. It depends on the lender’s policy whether you will have to provide a personal guarantee or collateral. Good business credit alone won’t usually mean no PG; you’ll also need to demonstrate revenues that meet the lender’s requirements, and meet their time in business requirements (for example, one year in business).

  2. Ok iam so confuse rite now I don’t know if I did it rite they told me it would take 9 weeks its been seven an I really need this money me an my girl friend are homeless for over three years we stay in our van with no heater so I really need this money soon possible amen God

  3. I have a question…how can a start up business get a loan for 10 or 20,000 if they have no revenue to show, or no business credit built-up? I am so confused about what is said when you have a business but its really based on your PG. It should be told that you will not succeed unless you have good credit and if you do not then prepare to not establish business credit for about 6 to 8 months after opening. There should be loans to where it can boost you regardless of your credit

    1. A start up loan with no business revenue or time in business is extremely risky for the lender. If there is no personal guarantee the lender will have no recourse to collect if the business fails and many small businesses do. That’s why many lenders will require a good personal credit score and personal guarantee from the owner until the business has established strong business credit, revenues and time in business. That said there may be options. Have you seen our video on start up financing?

  4. Do you know of any lenders that will extend a line of credit to a Tech start-up company? I’ve been in business for over three years.

    1. Walter, Lending environments are changing daily. You can set up a call with our Credit & Lending Specialists – just keep in mind they are booked out right now due to demand for the SBA Cares Paycheck Protection loans. But we’ll help as soon as we can!

  5. What companies and/or BLC’s do you recommend for persons wanting to do fix’n’flip rehabs in real estate, where $200,000 can be bought for half or less of ARV, repaired with minimal investment , then sold at or near full market value?

    1. Benton, Nav offers a free lending marketplace where we work with a variety of lenders. You can check it out with a free Nav account (which won’t affect your credit scores). If you have any questions about your specific options you can always talk with our Credit & Lending team. Many of our Nav customers are involved in real estate.