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Rebuilding Credit With A Business Line of Credit

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Business Line Of Credit For New Business

Your small business is doing pretty well in your hometown. Encouraged by the numbers, you decide to expand your business and set up a store in another city. You need funds to lease space for three years, which would make a term loan the most recommended option.

business line of credit_06A business line of credit gives your business access to cash, whenever you need it, up to a pre-specified amount. The main advantage is flexibility. Funds are always available when you need them, but you pay no interest until you draw on the line.

Business Line Of Credit Requirements

A business line of credit provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say, $200,000 — and pay interest only on the money borrowed. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit.

With a business loan, the monthly payments do not change whether or not you are using all the money. If you opt for a line of credit, you need to make payments only on the sum of money you have borrowed. In other words, if your balance is zero, your payment is also zero.

A business term loan provides an immediate infusion of funds designated for a specific purpose. One-time expenditures or long-term financing needs can be financed by one of our secured loans.

A small business loan allows you to borrow a substantial sum of money for business purposes. The sum is paid to you all at once and you are required to return it within a specified period of time. The loan term can range from a year to 20 years.

Business Lines Of Credit Without Personal Guarantee?

Small Business Administration 504 loan programs offer long term financing opportunities to be used for fixed asset purchases by small businesses. We partner with local Certified Development Companies (CDC) who work with the SBA to provide small businesses with loans usually reserved only for larger firms. Typically, a 504 project includes a loan secured from our firm with a senior lien position loan covering up to 50% of the project cost, an SBA guaranteed loan with a junior lien up to 40% of the project costs, and a borrower contribution of at least 10%.

business line of credit_15Small Business Administration Loans 7(a) loans are the most basic and commonly used types of SBA loans because of the program’s flexibility and its ability to help start-ups and existing small businesses obtain financing that might not be available through traditional lending channels. Loan amounts are available up to $5,000,000 supported by up to a 75% loan guaranty by the U.S. Small Business Administration.

Lines of credit can also be used to accommodate the seasonal credit demands of a small business. They provide the opportunity to purchase additional inventory as needed, and to take advantage of short-term offers such as equipment sales. Lines of credit typically have lower interest rates than credit cards, which in many cases can make them a better option for short-term financing.

Lines of credit have two main advantages over other alternatives. They can be very flexible, as long as you use them within their limits. This flexibility allows you to deal with occasional cash flow problems.

Lines of credit are also not directly available to pure startups. Companies must have two years of trading history and must be profitable. They must prove to the lender that they can repay the line.  Lines of credit are also less expensive than other alternatives. Therefore, they can work with businesses that have low margins.

Secured Business Line Of Credit

You can start your account online with our two-page application. We can usually get an answer back to you the same day you submit your completed application. We disclose all of our fees up front and we never hit you with hidden fees later on. We limit your expenses by having no set-up fees and no facility fees. We advance you the full face value of your invoices, minus our small lending fee.

With a variety of credit loan options, perfect for your business needs, we offer flexible financing, fast decisions and the product/service mix to meet your needs. This includes term loans, great for the purchase of equipment, furniture, fixtures or other business assets.

Own a Business? Need a Credit Line? - Apply Now