BUSINESS LINE OF CREDIT
What is a Business Line of Credit?
A business line of credit is a type of working capital. It's similar to a loan, but it doesn't have to be paid back in full at the end of the term. Instead, you can pay off only the amount that you borrow and use the rest for your business.
How much can I get?
The amount you can borrow depends on your business and personal finances. Your credit score will be considered, as well as your business's cash flow history. You'll also need to show that you have enough equity in your business to cover any outstanding debts from previous loans or lines of credits.
What are the benefits?
A line of credit helps you manage cash flow more easily than taking out a loan because you only pay back what you borrow and don't have to worry about interest charges or monthly payments during slow periods of business activity.
Typically no collateral required
May have maintenance fee or withdrawal fee
Good credit and consistent revenue required
Short term needs
Seasonal business to manage cash flow