What is an unsecured stated income business line of credit?


The unsecured stated income business line of credit (LOC) can be a very useful financial tool for a business owner. Startup companies may take advantage of it using it as a credit card; also, unsecured LOCs have the check writing possibility, as well.

Unsecured business lines of credit are a very recent product designed by some mortgage and financial companies. You don't need any collateral and the major requirement is to have been in business for 2 years.

General Features of Unsecured Business Lines of Credit

  • Check writing access;
  • Interest rates lower than most credit cards;
  • Stated Income/No Doc available usually up to $400,000;
  • Full doc unsecured business LOC can reach $5,000,000 and over;
  • Decision making to provide financing is made on some business financials, credit score and credit history. 700 FICO is most often preferable;
  • Business plan may be required (unless credit score is excellent).
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