Get an Amazing Business Line of Credit, what's a credit line? It's an agreement between a financial
institution or a private investor establishing a maximum loan balance a borrower can access
a borrower can access funds from their line of credit any time long as they don't exceed
the maximum set in the agreement and as long as they meet any other requirements of the finance
institution or investor such as making timely payments the money does not have to be used for
a pre-specified purpose it's a bit like a credit card without the plastic. Business credit lines
have many unique advantages including flexibility, you only pay interest on what you use unlike loans
where you pay interest on the full amount borrowed credit lines can be reused pay off
a balance and use that available credit again and again they are the most commonly requested
loan type in the business world but true credit lines are rare and hard to find many are also
tough to qualify for requiring good credit time in business and financials but there are other credit
cards and lines that if you know about these are available for startups bad credit even if
you have no financials. What about a revenue credit lending line? Some lenders now offer credit lines
instead of straight advances the lender will often approve you for both alone and then an
extra credit line of about $20,000, when you apply upon approval you are offered the credit line if
you qualify a little harder to qualify for than just cash advance you might need better credit
or a compensating factor funds must be used to improve the business they want 20% profit
margins for approval they often want to see tax returns unlike regular advances where all they want
is bank statements get unsecured cash advances merchant advances revenue lending and cash
flow financing it's a great way to get fast and easy money get approval with one or more years in
business even with a 500 FICO score this is about the only type of unsecured financing not requiring
good personal or business credit for approval. Let's check out a Cash Flow Financing Credit
line merchant cash advances are the most popular way to get financing in large part due to the easy
qualification process companies with $10,000 in revenue can get approved with the business owner
having scores as low as 500 some sources now offer credit lines that go with their loans.
Let's look at private equity lines of credit these are often for $250,000 $500,000 or even 1
million dollars pay an 8% rate you need 20% liquid capital and mid 600 credit score's
you can use funds from other funding you must produce tax returns for the last couple of years.
Let's look at an unsecured bank line of credit, some alternative lenders now offer lines of
credit for $50 to $150,000 they usually only want tax returns if you want to get over $100,000 they
need your P&L and balance sheet rates are usually 7 to 10% the approval amount is usually
10% of annual cells for tax returns you must have an experience score of 700 or better.
What about high-limit credit lines? Some private investors and lenders also offer high limit credit
lines there are possible limits of $50,000 to $250,000 you
must have a FICO score of 720 or better with no derogatory credit and you must have good
business tax returns for two to three years showing increasing profits some sources require collateral
most don't but a personal guarantee is required you need full documentation this means tax
returns P&L's balance sheets and bank statements for both personal and business some of these are
guaranteed by the SBA let's recap there are several types of business lines of credit out there try the
SBA's for cap lines programs or SBA Express or try inventory financing or account receivables you
can also try to get a revenue credit lending line or cash flow financing and check out a
0% unsecured credit line program particularly if you have a startup or are in a high-risk industry.
Contact us today to learn more about how you can get an Amazing Business Line of Credit.