Every business needs working capital for everything from small purchases to growth projects. However, new businesses above all others need a reliable source of working capital to ensure they have a successful launch, build a brand and presence for marketing, and maintain operations during that crucial first year. With all the challenges facing new businesses, how can they get the working capital they need?

Overcoming Hurdles

Traditional lenders and financial firms have very high requirements for businesses to qualify for working capital programs and lines of credit. Unfortunately, new businesses are often marginalized by these requirements because they do not have the assets to use for collateral or the established financial history to secure the working capital they need, and frequently face turndowns while larger competitors get approved. New businesses need to find an alternate path so they can get access to working capital.

Lines of Credit for New Businesses

New businesses can get access to lines of credit without needing to jump through hoops or meet prohibitively high requirements. Unsecured business lines of credit are available to new businesses without requiring any collateral upfront. This means that new businesses that may not qualify for traditional loans can still get a source of working capital so they can maintain and grow their operations successfully.

Discretionary Capital

Unsecured lines of credit offer new businesses a source of discretionary working capital. Traditional loans typically have a single purpose, such as equipment, commercial property, refinancing, or something else. Using funds for anything outside of the designated purpose can place businesses in breach of the loan agreement. By contract, unsecured business loans of credit can be used for anything from office supplies to marketing, equipment upgrades, smoothing out uneven revenue periods, time-sensitive opportunities, and more. Unsecured lines of credit offer new businesses much more flexibility than single-use, single-purpose loans.