Since there’s no collateral what happens if I default or stop making payments?
Unsecured Business Lines of Credit’s are obviously unsecured but just remember, there’s still a PG (personal guarantor) who signs for the repayment of the loan. If you default on a mortgage or a car loan there is obvious collateral attached to the loan that protects the lender. With Unsecured Business Lines of Credit’s you must keep in mind that if you default or stop making payments that the lenders will still do whatever they can to collect their money. So don’t confuse unsecured with non-recourse.
