Are Unsecured Business Lines of Credits on-recourse money?
No, not normally. Most Unsecured Business Lines of Credit’s require a Personal Guarantee or PG. “Non-recourse†monies are usually obtained through a good Paydex score on a Dun & Bradstreet report and do not require a PG. Although we love non-recourse monies it’s important to understand that these non-recourse lines of credit are usually for much lower amounts than PG accounts and the terms and interest rates on non-recourse lines are not nearly as good as PG accounts. So the bottom lines is that both PG money and non-recourse money are both good, but they serve very different purposes and there are very different ways in which you should utilize them.
