What is an Unsecured Business Line of Credit?

A brief description of an Unsecured Business Line of Credit and how it can be used.

An Unsecured Business Line of Credit is a revolving account with an established credit limit, similar to a credit card. You may borrow from or make payments on this account as needed as long you do not exceed the set limit.

This type of financing is not backed by deposits or collateral like personal property. The line of credit typically features revolving loan terms with annual renewal, no interest charges until you use the funds, and possibly, cash advance fees.

An unsecured business line of credit is typically used for any type of business expenses or needs such as expansion, reserves, or property acquisition.