How it Works
1
Apply online in
just minutes
Apply directly through our secure-based application.
2
We find you the
best match
We’ll evaluate your business needs and revenue to provide you with the best options possible.
3
Receive funds
quickly
Choose your capital and get funded in as little as 24 hours!
Business Line of Credit
A business line of credit is a revolving line of credit that businesses can use to finance their operations. It is similar to a credit card in that you can borrow up to a certain limit and only pay interest on the money you actually use. However, there are some key differences between a business line of credit and a credit card.
First, a business line of credit is typically secured by collateral but now other lenders do offer unsecured lines of business credit. You can purchase equipment or inventory. This means that if you default on your loan, the lender can seize your collateral to repay the debt, if you collateralize the equipment. Second, business lines of credit typically have lower interest rates than credit cards, even when it’s unsecured. This is because lenders view business lines of credit as being less risky than credit cards.
What can a Business Line
of Credit be Used For?
- Buying inventory
- Paying for operating expenses
- Expanding your business
- Covering unexpected expenses
A Few Things to Note
When Applying for a
Business Line of Credit
- Your credit score will play a major role in determining your eligibility and interest rate.
- You will need to provide the lender with financial information about your business, such as your income statement and balance sheet.
- The lender will likely require you to provide collateral.
If you are approved for a business line of credit, it is important to use it responsibly and repay the debt on time. This will help you maintain a good credit score and keep your business’s finances in order.
What are the Benefits of
a Business Line of Credit?
- Flexibility
You can borrow money when you need it and repay it when you can. - Convenience
You can usually access your line of credit online or through a mobile app. - Competitive Interest Rates
Business lines of credit typically have lower interest rates than credit cards. - Security
A business line of credit is secured by collateral, which can help protect your business’s assets.
What are some of the Drawbacks
of a Business Line of Credit?
- Fees
Business lines of credit often come with fees, such as annual fees and origination fees. - Interest
You will need to pay interest on the money you borrow, which can add up over time. - Collateral
If you default on your loan, the lender can seize your collateral to repay the debt.
Are you ready to
apply for a Business
Line of Credit?
Overall, a business line of credit can be a helpful tool for businesses that need access to short-term financing. However, it is important to understand the risks and fees associated with business lines of credit before you apply for one. Let’s get started today!
