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When you are set up to get your business underway, you are going to need to know how to underwrite. Business line of credit, mortgages, credit cards and other forms of business credit are all very common forms of business for lenders, and knowing what is entailed in the business underwriting process is key to getting the best results for yourself.
When securing a form of business credit, the lender is going to need to see some kind of security, that is, some kind of pledge demonstrating how you are able to cover the loan in the event of a catastrophe to the business. These vary across credit platforms; credit cards are usually unsecured (although many start up businesses will need to keep security in the form of a savings account to qualify for a credit card). Mortgages and business lines of credit tend to be more demanding in terms of underwriting requirements. To qualify for a business loan, you will more than likely need to put up 20% (or pledge property or assets as security). Lines of credit tend to be somewhere in between the two. They are flexible, but large in size and often issued by banks; unless you are dealing with a loan officer that does not know how to underwrite business line of credit, you will probably have to put up some security as well in order to secure the loan.
However, all of these methods are undoubtedly better than the alternative of simply waiting around and saving up to do the entire job yourself! There is no doubt about that at all. Talk with your colleagues and business partners, and see where the best places are to go for the money that you need. As long as you understand the principles of how to underwrite business line of credit, you will not have any difficulty finding the line of credit that you need!