How to Get a Business Line of Credit
Best Time to Get a Line of Credit
Available Funds for your Business
We provide resources to get revolving credit lines for businesses up to $250,000. The approval process is based on your business performance. The wait times are a lot less than applying for a traditional business loan and done mostly online.
The advantage of a line of credit versus a standard business loan is that interest is not being charged on unused funds. Moreover, your business can draw on the line of credit at whenever you need. Another name for a revolving line of credit is a small business line of credit.
The Difference Between a Revolving line of credit a Business credit cards
While a revolving line of credit is very similar to a credit card, it's important to remember that they aren't the same. Credit cards usually have higher interest rates and any time you need cash advance there's additional fees. Business credit cards are a type of unsecured loan which means the business owner is liable for unpaid debts so their is recourse,or personal guarantee. If you're trying to expand your business, a business line of credit is the superior choice.
Can I Get a Business Line of Credit with Bad Credit?
Yes. There are lenders who offer your business a line of credit with a low credit score.
Can I Get a Business Line of Credit without a Personal Guarantee?
Yes. This is known as an unsecured line of credit.
Revolving credit vs. Non-revolving credit?
The vast difference between a revolving line of credit and a non-revolving line of credit is accurately indicated in the name. Revolving credit allows you to use funds for numerous purchases and use the credit limit multiple times after it's paid off. With non-revolving credit, you're not able to use the funds again. The benefit of non-revolving credit is it usually has lower interest rates and fixed payment terms.
The Difference between Revolving credit and Installment loans
Revolving credit allows a business owner to borrow as much as they need within their approval limit and multiple times. The funds are valuable to quick access whenever it's needed. An installment loan is a loan with a fixed payment period ranging from 24-60 months. They are usually allocated for bigger purchases like new equipment or opening a new location.
Revolving credit can be used for a variety of reasons. Let's say your store had an accident and needs to be fixed. You could submit an application for a line of credit to get hold of some pretty fast money to get it repaired. Or for example you need money to satisfy payroll for the upcoming pay period. With a revolving line of credit your bank account can get funds once you're approved. For business owners who have a seasonal business a revolving line of credit is an excellent option.