While a working capital loan is a great funding option for many business needs, a business line of credit is a better fit in many small and start-up companies. The primary difference: A working capital or business loan is a one-time funding source with a fixed payment and terma business line of credit can be used several times and requires payment only when capital is borrowed.

Lines of credit are generally divided into two types: Secured lines of credit and unsecured lines of credit. Secured lines of credit rely on and are “secured” by the business’s assets (collateral), while unsecured lines of credit are based on the company’s business credit rating and the personal credit score of the owner(s).

Clipper Commercial Capital specializes in Unsecured Business Lines of Credit. These unsecured lines do not require collateral, and include business credit card solutions and “check book” lines up to $250,000. Unsecured credit lines are a flexible and cost competitive option for new and start-up companies with limited assets and revenues.

Availability of credit depends on the credit profile, the size and profitability of the business. Small, Start-up businesses with little or no established revenue stream and business owner(s) with good credit profile will often receive a credit line of between $25,000 –$150,000. Established companies with revenues that range from $1,000,000 up to $10,000,000 and strong business credit can qualify for between $100,000 –$1,000,000 with limited collateral.

Clipper, through our network, offers a number of business card solutions for small and start-up businesses. Many of these programs offer 0% introductory rates on business credit cards for up to one year, with competitive rates after the introductory period.

Get Started: We offer a No-Obligation Pre-Qualification that requires just a few minutes to complete.