A Revolving Business Line of Credit|No Collateral Required
As a local business owner, you know that money is everything. Without it, your business idea will never take off. And when you need working capital fast, the last thing you want to do is undergo the drawn-out and difficult process of applying for a traditional small business loan. That’s where we come in. We work with creditors that provide speedy and simple online applications for a line of credit that doesn’t require collateral.
Small Business Working Capital understands that time is critical when you need cash money for an unexpected emergency to cover payroll or acquire new equipment. That’s why we work with lenders that have a quick approval process that is exclusively online. So, if you need working capital fast, we can help you get the funding you need to make your business idea a reality.
Commonly Asked Question about Business 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 personal line of credit in that you can borrow and pay back the funds as needed, up to your line of credit limit. The main distinction 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 company without putting your business assets in jeopardy.
Is a business credit line better than a Loan?
There is no clear-cut answer to this question as it depends upon the specific financial situation of the 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 called for, and there is no long waiting period to get the funds. A loan may be a better option for a company that needs a set amount of cash 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 an excellent way to offer your business some financial flexibility. However, the qualifications for a business credit line can vary from creditor to finance company:
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.
Meeting these requirements, you should be well on your way to acquiring 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 conventional loan provider, but it depends on the creditor and the business’s credit rating. More traditional Lenders will look at the company’s credit score, credit history, and profitability to determine whether to give them a line of credit. However, our lending institutions give more weight to your month-to-month revenue than your credit history and do not require collateral, as do more traditional lending institutions. If you have a monthly income above $15K and a credit score of 550 and above, you will have a genuine chance of getting 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 excellent option for small companies. It enables you the freedom to pull funds when you need them, and you only pay interest on what you use. This can be a great asset to your company, giving you the ability to cover unplanned expenditures, finance equipment, buy inventory or take advantage of opportunities when they arise.
However, it’s vital 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.