It used to be that even upstart businesses with no credit history could secure $50,000 lines of credit with no documentation. Bank of America began such a program in 2006. And since then, other banks followed suit offering $50,000 and $100,000 loans to new and un-proven businesses. In a press release at the time, Bank of America stated that even “a small business owner in business for only one day could qualify” for its $100,000 line of credit program.
Until recently, credit cards had always been a reliable source of financing for entrepreneurs as well. Ease of credit card access gave small business owners an important, cost effective, and highly flexible means for managing cash flow, purchasing inventory, and expanding operations.…Continue reading