Business Line of Credit
Money When You Need It Most!
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- Secure Forms
- Simple Process
- No Upfront Fees
- All Credits Welcomed
- Minimal Paperwork
- Competitive Rates
Small Business Lines of Credit
- Credit limits from $20,000 to $100,000
- Potential rate lock option on draw
- Make payments only if money is drawn
- No prepayment penalties
- All credits welcomed
- No Tax Returns
Why small businesses need a line of credit
- Working capital
- Unexpected expenses
- Cash injections
- Purchasing supplies
- Buying new equipment
- Managing Cash Flow
- Buying Inventory
- All business related expenses
What Is A Business Line of Credit
A business line of credit is like having money on demand, a great tool for any business that requires cash injections from time to time. Having a line of credit gives you access to cash when you need it without jumping through hoops of getting a loan every time.
You can draw up to the maximum limit when you need money and carry a zero balance when you don’t.
Only pay interest and make monthly payments on your balance due based on the draw (money borrowed) from the line of credit.
This is the perfect tool for any business owner stressing the unexpected curve balls of owning a business. Get a line of credit
How does a business line of credit work?
A business line of credit is a revolving line of credit that offers a business owner certain flexibility and advantages a regular small business loan can not provide.
An unsecured business line of credit is a tool for business owners to access money on demand for all business expenses as they arise with no restrictions on usage.
A business loan has a one-time lump sum disbursement and the borrower is expected to begin making recurring monthly payments on the full balance of the loan immediately. However, with a business line of credit, there is no lump sum disbursement. Thus, the borrower will not incure monthly interest charges and won’t have monthly payments; unless the borrower draws from the business line of credit.
A $50,000 business line of credit means the business owner can draw (borrow) up to $50,000 at any time. So, if the business owner decides to spend $20,000 on new inventory, they will withdraw the $20,000 and have access to the remaining $30,000 for future use.
Monthly payments on business lines of credit
The monthly payments on a business line of credit are based on the withdrawn amount or balance. If we use the example above, the payments will be based on the $20,000 the business owner withdrew to buy new inventory. If they use another $10,000 in the future, the payments will increase to factor in the additional $10,000 withdrawn. The payments will always adjust as the balance increases.
A business line of credit is revolving
With a business line of credit, a business owner can keep drawing and repaying the line of credit as often as they’d like. For example, if a small business owner draws $28,000 on a $30,000 line of credit, they’ll only have $2,000 available for future use. However, if they pay back $10,000 of it, they’ll have $12,000 available for future use.
They can keep doing this as long as they make on-time payments for the withdrawn amounts and don’t exceed the credit limit.
How to get a business line of credit
Online lenders usually have fewer qualification requirements than traditional lenders. Traditional lenders require solid financials, tax returns, profit and loss statements, high personal credit ratings, and other documents before approving a business line of credit.
Business lines of credit offered by online lenders have much fewer requirements for qualification. For example, instead of asking for tax returns, several bank statements will usually do the job, no need for personal and business tax returns. Personal credit scores don’t play a huge role, and the business has to be established for only a year. Overall, the process is streamlined and much faster.
The lax requirements of online lenders pose a higher risk of default, which is likely to result in higher rates for high-risk borrowers. No one likes to pay more, but paying higher fees and having access to funds quickly, far outweighs the downside of losing business for lack of access to money or credit.
Advantages of a business line of credit
With a business line of credit, a borrower can skip the downtime of requesting a business loan and getting approved every time they need money for business expenses.
Think of a business line of credit as money on demand at with no interest charges as long as the borrower doesn’t draw.
All businesses, regardless of size, should have a business line of credit as insurance for unforeseen or unpredictable expenses associated with running a business.
Free Loan Review Services
If you have offers for a new loan or an existing loan, be sure to schedule a free loan review with an experienced agent who can suggest options more suitable to your needs.
Restrictions for usage
Lines of credit granted based on assumed business needs should only be used for business related expenses. As long as the funds are used in a lawful manner to improve the business there are no restrictions.
The goal is to process every request with only a soft pull. A soft pull is a type of credit check that shows credit ratings, outstanding balances, score and etc. without actually pulling a credit report. Depending on credit ratings and other factors which contribute to the lender’s decision making process, some applicants may require a full credit check.
Understanding your business needs and expectations
The specialists we connect you with work with business owners like you every day and realize what it takes to succeed in today’s business environment.
Benefits of a line of credit
- Access to cash on demand
- Only draw what you need
- No monthly payments with $0.00 balance
- Funds deposited into your account
- Build a stronger business credit for the future
- Be prepared for unforeseen expenses
Secure forms and peace of mind
We only work with trusted lenders and lending partners who meet our highest standards.