Experience on unsecured business line of credit

When you work for the finance or accounting department of a company, you can easily see the flow of money in the company. I remember working for a graphics company where I always worried about where to get the funds to cover the next payroll, or even a part of it. Company assets were tied in receivables and the owner didn’t want us to step up our collection efforts due to his friendship with the clients.

My solution back then was an unsecured business line of credit but when I applied for it in the banks where the company had accounts, we were declined. The company owner had a history with bouncing checks so that alone was a reason not to be given a line of credit.

When I resigned and got employed in another company, I made sure that we have a line of credit in the banks where the company kept their accounts. And the company was easily given an unsecured line of credit because the company owners, CFO, COO and CEO of the company all had good credit reports. It was so easy to get a business loan during my stay with that company and I didn’t have to worry where to get funds for company spending.