Unsecured Business Line of Credit

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 29, 2023

An unsecured business line of credit is a line of credit offered to businesses that is not secured by collateral.

An unsecured LOC is the most common form of business line of credit.

Unsecured lines of credit tend to be more expensive due to the comparatively higher risk.

Unsecured Business Line of Credit for Startups

It can be difficult to get an unsecured business line of credit as a startup.

If you have limited credit history, banks may see you as too risky.

However, there are many alternative lenders, such as online lenders, that have less strict credit requirements and can serve you as well as a bank.

Unsecured Business Line of Credit (No Doc)

A no doc business line of credit is like a regular line of credit, but without requiring as many documents.

No doc lines of credit are often unsecured, meaning they are not backed up by physical assets.

Usually, a no doc LOC will be supported by the personal credit of the business operator.

Unsecured Business Line of Credit FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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