collateral, they provide serious business owners with the latitude to navigate the vibrant world of al- ternative investing with confidence and foresight. It’s the financial leverage that could act as the “tip- ping point,” propelling your invest- ments to unprecedented heights. THE FUTURE AWAITS Imagine a financial landscape without stifling constraints, where your alternative investments flow seamlessly, unrestrained by any fiscal shackles. A realm where you possess the nimbleness to capitalize on fleeting opportuni - ties, ensuring that your efforts culminate in maximized returns. Such a future is not just a figment of imagination. With the adept utilization of inexpensive, unsecured business lines of credit from banks, the vision for this future stands within your grasp. For serious business owners, eager to ascend the ladder of investment success, understanding
A POWERHOUSE IN ALTERNATIVE INVESTING Here are several reasons why unsecured business lines of credit are a powerhouse when it comes to alternative investing: NO. 1 FINANCIAL FLEXIBILITY. The revolving nature of bank unsecured business lines of credit offers unparalleled financial flexibility. Investors can access funds when they need them, repay the used amount, and then borrow again.
NAVIGATING THE POTENTIAL RISKS
As with any financial instrument, it’s crucial to understand potential risks. With bank unsecured business lines of credit, there are a few considerations: NO. 1 BORROWER FUNDABILITY IMPLICATIONS. Since there’s no collateral, lenders place a significant emphasis on the borrower’s fundability. Thus, any defaults or late payments can severely impact a borrower’s fundability and credit profiles for years to come. HIGHER RATES THAN SE- CURED LINES. Although competitive, interest rates for unsecured lines might be higher than their secured counterparts. It’s vital to weigh the costs against the benefits. NO. 2 NO. 3 FLUCTUATING TERMS Depending on market conditions and the lender’s discretion, the terms and interest rates can change, making it essential to stay informed and prepared. YOUR GATEWAY TO MORE Unsecured business lines of credit are attractive not only because of their primary features but also for the cascade of opportunities they can unleash for serious business owners. Achieving approval-readi- ness for these lines sets into motion a domino effect. Like discovering a master key, you’ll find doors opening to multiple other credit avenues, all tailored to amplify the performance of your alternative investments. By offering rapid access to funds without the constraints of
This cyclical process enables continuous liquidity, vital for alternative investing.
NO. 2 SPEEDY ACCESS TO CAPITAL. In the fast-paced realm of investing, time is often of the essence. Unsecured lines of credit provide quick access to funds, ensuring investors can seize emerging opportunities without delays. NO. 3 NO COLLATERAL, NO PROBLEM. The absence of collateral requirements means that businesses can retain their assets, avoiding potential liquidity crunches. Moreover, the application process becomes streamlined, further hastening the borrowing process. NO. 4 COMPETITIVE INTEREST RATES. Despite being unsecured, these credit lines can offer competitive interest rates that are typically prime plus 1% to 2%. These rates can create a massive arbitrage or simple savings opportunity, especially when compared to other unsecured financing options. The potential savings can then be channeled into more investments.
and harnessing the power of unsecured business lines of credit is invaluable. •
Merrill Chandler, a personal and busi- ness credit pioneer and co-founder of Lexington Credit Repair Law Firm, became dissatisfied more than 30 years
ago with the ineffective results of credit repair. He discovered that getting approved for personal or business credit did not rely on a credit score but, in fact, was the result of having “fundable” borrower behaviors. With the right strategies, a borrower could “optimize” their financial behaviors to become highly fundable, increasing the frequency and amount of their credit approvals. He co-founded Get Fundable! to help real estate and business entrepreneurs nationwide grow their businesses the way they want, resulting in his students and clients becoming more fundable and getting more than $250 million in funding.
38 | think realty magazine :: november – december 2023
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