A Revolving Business Line of Credit|No Collateral Required
As a local business owner, you know that cash flow is everything. Without it, your business idea will never take off. And when you need cash fast, the last thing you wish to do is go through the drawn-out and daunting process of securing a traditional bank loan. That’s where we come in. We work with financial institutions that offer speedy and simple online applications for a line of credit that doesn’t require collateral.
Small Business Working Capital recognizes that time is critical when you need cash for an emergency to cover payroll or purchase new equipment. That’s why we work with loan companies that have a fast approval process that is completely online. So, if you need cash fast, we can help you get the financing you need to make your business idea a reality.
Common Questioned about Line of Credit.
What is a business credit line?
A business credit line is a type of business funding that can provide working capital to increase your business enterprise. It’s similar to a credit line in that you can borrow and repay the funds as needed, up to your line of credit limit. The main difference is that a business credit line is backed by your business revenue in place of your private assets. This type of financing can be a great way to get the money you need to increase your small business without putting your business assets in danger.
Is a business credit line better than a Loan?
There is no definitive answer to this question as it is dependent on the particular financial situation of your business in question. A business line of credit may be a better option for a small company that needs flexibility in its borrowing, as the credit line can be used as needed, and there is no extensive waiting period to obtain the money. A loan may be a better option for a business that needs a set amount of funds and better rates for a specific purpose, such as equipment purchases or real estate.
What are the requirements for a business line of credit?
Business credit lines can be a great way to give your business some financial freedom. However, the criteria for a business credit line can vary from creditor to lender:
You must have a 550+ Personal FICO score.
$15k+ in monthly revenue for three consecutive months.
Have a business in the USA for 1+ years.
Fulfilling these requirements, you should be well on your way to obtaining a business line of credit.
Is it difficult to get a business line of credit?
It can be challenging to get a business line of credit with a traditional lending institution, but it depends on the financial institution and the company’s credit history. Traditional Lenders will examine the company’s credit score, credit history, and profitability to determine whether to give them a line of credit. However, our financial institutions give more weight to your monthly earnings than your credit history and don’t require collateral, as do more traditional lenders. If you have a regular monthly income above $15K and a credit score of 550 and above, you will have a real chance of acquiring a line of credit up to $100K.
Is a line of credit a good idea for a small business?
A line of credit is an exceptional option for small companies. It enables you the flexibility to take funds when you need them, and you only pay interest on what you use. This can be a terrific asset to your company, giving you the capacity to cover unplanned expenditures, finance equipment, purchase inventory or take advantage of opportunities when they arise.
However, it’s crucial to remember that our line of credit is a cash advance on future income, so you will need to be diligent about making payments on time and keeping your balance manageable.