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Business Line Of Credit2018-09-21T10:39:28+00:00

Business Line Of Credit

A business line of credit offers funding only when your business needs it. Upon approval, you simply draw on your account as the need for capital arises – whether that occurs tomorrow, next week, or next month. Payment towards your line of credit is only required when the credit line is actively drawn upon. For instance, even upon approval and funding, your balance will remain at zero until you start making withdrawals. At that time, you can choose to make payments weekly or monthly. A business line of credit will also help improve the creditworthiness of your business as providers report repayments back to credit bureaus over time. Common uses for a business line of credit include managing overall cash flow, supporting accounts receivable, inventory management, purchasing inventory at a discount, working capital, and buying equipment.

We offer different types of business credit lines. The approval amount on our quick-turnaround lines will be determinant of the overall health of your business, and credit scores may not equate to much of a factor. We can provide 24-hour turnaround and get you a credit limit approved up to $200,000.

Why Choose Us For A Business Line Of Credit?

  • Solid Foundation and Reputation

  • Strong Industry Partnerships

  • Approval In As Fast As 24 Hours

  • High Applicant Approval Rates

  • Commitment To Our Clients Goals

  • We’ve Done The Research For You

  • Funding In As Fast As 48 Hours

  • Simple Weekly Repayment Terms

Do I Qualify?

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Months In Business
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Personal Credit Score
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Annual Revenue

Repayment

Upon approval, you simply draw on your account as the need for capital arises – whether that occurs tomorrow, next week, or next month. Payment towards your line of credit is only required when the credit line is actively drawn upon. For instance, even upon approval and funding, your balance will remain at zero until you start making withdrawals. At that time, you can choose to make payments weekly or monthly from your business checking account.

Fixed Weekly Repayment Structure

  • For any business that invoices or charges customers

  • Payments only due when line is drawn upon

  • Automated weekly payments

  • Easy capital at your fingertips

Pricing & Return On Investment

Lines of credit will be offered with payback terms of 5% – 17% simple interest rates based upon an analysis of the health of your business. Approvals can be driven by credit score, debt ratios, credit inquiries, and accounts receivable. Example ROI: Your supplier offers you inventory at a large discount if you buy in the next few days. You choose to draw $10,000 to make the purchase, and sell the product for $20,000. Your total cost of borrowing for a period of four weeks is $262.22. Your total profit is $9737.78

How Does a Business Line of Credit Work?

A business line of credit works in a similar way to a credit card or cash advance. If you need funds for a purchase or unexpected cost, then you can draw on your line of credit to pay for it. At this point, you’ll start being charged interest and have to make monthly or fortnightly repayments. But if you don’t need to use it, then you don’t get charged. This makes it a flexible and cost-efficient option that can adapt to the changing needs of your business.

Similar to business credit cards, you can also reuse and repay the balance on your line of credit whenever you like. If you land a big client and find yourself able to pay it off in full, then there aren’t any early exit fees that penalize you for being financially savvy (unlike repaying prior to the end of a loan term). If your business is seasonal and generates most of its income at a specific time of year, then a business line of credit can see you through the quieter months and be repaid in the busy season. As long as you keep making your monthly repayments, you’ll just pay a small amount of interest on the outstanding balance.

How Much Can I Borrow?

The amount you can borrow will be based on a number of factors, including your annual revenue, months in business, and personal credit score. We offer business lines of credit for up to $200,000 which should be enough to meet most short-term needs. If you’re looking for a larger line amount, then take a look at our small business loans instead.

Qualifying for a Business Line of Credit

To qualify for a business line of credit with us you’ll need to have been operating for 6 months, on track to generate $300,000 annual revenue, and have a personal credit score of 620. Traditional banks will have much stricter requirements such as several years trading history and a near perfect credit score, but we don’t think that’s realistic for many small and growing businesses. Some lenders also want to see monthly profit and loss statements along with comprehensive business plans and tax returns, however, we don’t need that much detail. As long as you meet our three key criteria, we’ll be satisfied that your business is a sound operation that can repay any borrowings.

What About Collateral?

We offer unsecured lines of credit which means you won’t need to offer real estate as collateral. Most traditional institutions also offer unsecured finance products and services for smaller amounts but will require security for larger sums. This puts your home or car at risk since they can seize it if you fail to make repayments, however, it’s not the way that we operate.

How Do Costs Compare With Other Lenders?

You’ll find that a business line of credit with us offers highly competitive rates and flexible terms. As an online lender, we don’t have the operating costs and large overheads of bricks and mortar banks, so we can pass those savings onto you. Our interest rates start at 5% and we don’t charge high annual fees, unlike traditional institutions. We may not offer a snazzy reward program or air miles, but we do provide simple, affordable funding at competitive rates. See if you qualify now!

Get Approved For A Credit Line Up To $200,000!

See If You Qualify!