When dentists need access to financing, a line of credit can be an excellent solution. But should you opt for an unsecured or secured line? Here’s an overview of the key differences dentists should understand when weighing these options:

Unsecured Lines of Credit

An unsecured line of credit is not backed by any business or personal assets as collateral. This makes qualification easier since lenders are taking on more risk.

Benefits of unsecured lines include:

• Easier to qualify - No need to pledge collateral assets.
• Access larger amounts - Lines up to $250K are possible depending on revenues and credit score.
• Flexible spending - Funds can be used for any business purpose.
• Potentially lower rates - Unsecured rates can be competitive, often Prime + 0-3%.

The main downside is that unsecured lines generally have lower maximum limits before additional collateral is required.

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