| The U.S. is in the midst of a pretty harsh credit | | | | --Sometimes a personal financial statement is |
| crunch. Nearly all types of secured financing have | | | | required (if your revolving debt is more than |
| become more challenging to obtain. Car loans are | | | | $25k) |
| harder to get. Home loans are harder to get. | | | | Sometimes that old saying is correct, cash is king. |
| Business financing is harder to get. What about | | | | If your business needs working capital and the |
| unsecured working capital for businesses? Does | | | | aforementioned items apply to you, you may still |
| that still exist in 2008? | | | | be able get your hands on some unsecured |
| The good news is, it's still feasible for a business | | | | working capital. The terms are anywhere from |
| to obtain unsecured working capital. The biggest | | | | 3-5 years and it's possible to get anywhere from |
| difference today compared to a year or two ago | | | | $15,000 to $150,000 (requests above $75,000 |
| is that the bar has been raised significantly. Here is | | | | currently require a minimum time in business of 7 |
| a brief rundown of the current requirements for | | | | years). |
| an unsecured working capital loan. | | | | If your business is in need of working capital, but |
| --The business should be at least 5 years old for | | | | the aforementioned items don't apply to you, |
| consideration | | | | there still might be a way to get cash. Medical |
| --The business owner should have an Equifax | | | | professionals can still get unsecured working |
| score of 715 or higher | | | | capital loans relatively easily. Businesses that take |
| --Don't wait until you are too low on funds | | | | credit cards can get cash advances based on |
| because you'll need to show 3 months of bank | | | | their average monthly credit card receipts. |
| statements and it should have at least | | | | Businesses that have accounts receivable can get |
| $4500-$5000-ish or more in it | | | | cash advances based on their accounts receivable. |
| --You should be able to come up with the 2 | | | | As you can see, there are still options available |
| payments up front | | | | during the U.S. credit crunch. The landscape has |
| --It would require a personal guarantee | | | | changed a bit though, so make sure you maintain |
| --You'd need to furnish the most recent year's | | | | your credit. You don't want credit issues to |
| business tax return (sometimes 2 or 3 depending | | | | prevent you from doing what you need to do to |
| on amount requested) | | | | expand or maintain your business. |