Why Choose a Line of Credit?
Why Choose a Line of Credit?
- A business line of credit is the most flexible financial instrument on the market.
- Utilize revolving credit on an ‘as-needed’ basis to solve any/all short-term working capital needs.
- Fees are only applied to the drawn balance, and there are no maintenance charges for inactivity.
- With the constant uncertainty of receivables and supply-chain timing, credit lines have become the premium financial vehicle for small businesses.
- A business line of credit is a security blanket for your business. There is no obligation to use it. And when you do tap into it, you can use it to cover almost any small business need.
What is a business line of credit?
A business line of credit is a financial safety net for your business. It is also one of the most flexible forms of financing. The LOC may be used for buying equipment, hiring staff, covering receivables, or inventory financing.
Because a line of credit is revolving, you may use it as many times as you want. As soon as you repay what you’ve used, those funds become immediately available to draw again.
What qualifies your business for a line of credit?
To get a business line of credit, you need the following:
- Minimum 12 months’ time-in-business
- Minimum of 200K annual business revenue
- Credit Score of 550 or higher