Here's a more detailed look at the advantages:
Flexibility:
A business line of credit allows you to borrow what you need, when you need it, and only pay interest on the amount you use. This contrasts with traditional loans where you receive a lump sum upfront.
Cash flow management:
Lines of credit can help businesses manage cash flow by covering gaps between payables and receivables, especially during seasonal fluctuations or unexpected expenses.
Unexpected expenses:
When unexpected costs arise, a line of credit provides a readily available source of funds, avoiding the need to apply for a new loan.
Growth opportunities:
A business line of credit can be used to invest in new opportunities, such as purchasing inventory or expanding operations, without the constraints of a fixed loan.
Building credit:
Responsible use of a business line of credit can help build your business credit score and establish a positive relationship with a lender.
Cost-effective:
You typically only pay interest on the amount you borrow, potentially saving money compared to loans where interest accrues on the entire borrowed amount.
Revolving credit:
As you repay the borrowed amount, the available credit limit is replenished, allowing you to reuse it for future needs.
Overdraft protection:
A line of credit can also act as overdraft protection, helping you avoid overdraft fees and maintain a positive bank balance.
💲BUSINESS LINE OF CREDIT ☆ $50,000 to $100,000
General info
☆ Variable Interest Rate Range Starting at 4.39% (SOFR (Secured Overnight Finance Rate)) + 12.99% to 29.99%
☆ 1 week average to closing
Minimum Requirements
☆ 3+ Years in Business
☆ $250,000+ Annual Revenue
☆ 680+ Personal FICO Score
☆ 155+ Business Credit Score (Liquid Credit)