So, you're trying to figure out how much money you'll need for your credit line.
This is a question that a lot of business owners ask themselves when
taking out financing. It is a good question. It's good that you're thinking
about it. And this video, I'm going to share about 3 things or so that you
should ask or consider when trying to determine the amount of credit line that
you'll need. Stay tuned.
So, I believe that every business should have a business credit line on hand
unless you've got piles of cash just happen to be sitting around. Having a
credit line on the sidelines to strike when an opportunity presents itself or
to have on the sidelines for an unexpected challenge that may up in your
business. Things happen and shift and change so quickly in business today. So,
having access to capital is extremely important. So number 1, you know you got
to ask yourself, what are you looking to use the credit line for? Are you going to
use it for to buy inventory and more product? Or are you going to use it to take
on more jobs? You know, if it's for revenue-generating things, things are
going to bring in more sales and more profit into your business, then I think
that answer is simple and you should take the maximum amount of line that you
can. If the amount of money that you can make way outweighs the cost of the line,
then you should utilize the heck out of a credit line to buy as much product and
service or take on as many jobs as you can handle. So, number 2. This goes right
along with number 1. The cool thing about a business credit line is you only
pay for what you use. Whatever you usually draw down, you only pay fees and
interest on the money that you've drawn down. So, if you're going to prove for a
larger line than what you need, again, you're only paying for what you use. So
again, that's a really good thing to keep in mind and so you don't get too wrapped
up in what exactly amount you need. The whole beauty and the point and the
benefits of having a credit line is that you only pay for what you use. In order
to strike when a money-making opportunity presents itself, having that
larger line on hand is really actually a good thing. So, number 3. This is a
really good question to understand it when you're trying to figure out the
line amount. You want to ask are there any non utilization fees. Some credit
lines, if you're not using the funds either charge you for the amount that
you're not using or they'll shut down the line if you're not using it at all.
So, you really just want to understand, "Hey, if I'm not using this credit line,
are there going to be any fees if I get charged for the portion that I'm not
using? Or will close out at any point?" That's really important to understand so
you make sure that your line doesn't get closed down or you get charged for a big
amount of money that you're never really going to wind up using. So, in that case,
if there are non-utillization fees, you want to make sure that you're
borrowing a line that's not too much bigger than what you need so you're not
getting charged a bunch of fees. If there isn't any non utilization fees, then I
would probably open up the largest line that I could get approved for and have
money on the sidelines for my business when needed.
So, remember when utilized properly financing is a great tool in your
business. And a tool to generate more revenue and more profit. I can't tell you
how many business owners get caught up in the fees and costs of financing but
not the amount of money that they can make by utilizing financing in the right
way. Keep that one a month. I hope you found these 3 tips useful. They're
extremely helpful and definitely really good things that you should know. Again,
my team at National Business Capital and Services has helped business owners just
like you since 2007 now secure over a billion dollars in financing. There's a
number of different business credit line and financing options that are available
for businesses today. So, if you're ready or considering opening up a business
credit line for your business, check out the link below. You can connect with one
of my team members. Everyone on my team is super helpful, super knowledgeable.
They'll want to understand the needs of your business and from there, they can
explain the different options that are available and help make it a heck of a
lot easier so you don't have to do it on your own. Thanks for tuning the Grow by
Joe. If you found this video helpful, I put out videos everyday so. Sake sure you
subscribe and please make sure you drop some comments in below let me know what
you thought about this one. Thanks for tuning in and we'll talk soon. Take care.