Unsecured Line of Credit vs SBA 7a Loan

Unsecured Line of Credit vs SBA 7a Loan

Unsecured Line of Credit

Sometime a business can succeed by obtaining revolving business credit lines on your business’ behalf. These lines are Unsecured Revolving Business Credit Accounts that for the most part do not report to your personal credit. Funding ranges between $25K-$100K with a pre-approval amount within 24 hours and funding, normally, within 3-5 weeks.

• No cash infusion requirements
• No collateral requirements
• No pre-payment penalties
• Minimum FICO scores of 700 or better
• No recent or major derogatory items
• At least 5 years of credit history is preferred

 

SBA 7(a) Loans

Small Business Association (SBA) 7(a) loans are government-backed loans designed specifically for small businesses to help get their venture up and running quickly. The qualifications needed to obtain SBA-backed funding include:

• Personal Cash injection of 20%-30%
• Collateral (up to 100% of loan amount)
• Credit scores (680+)
• Repayment ability
• Industry experience (2-5 years)
• Business Plan