Business Line Of Credit
$6,000.00 to $100,000.00
6 month revolving
5 to 17%
As little as 24 hours
When the unexpected happens, a business line of credit can help your business recover faster with flexible business financing. A business line of credit refers to funding provided by a bank or lender. This funding works a bit like a credit card, providing you with a maximum amount. Like a credit card, you can use as much or as little of the funds as you need (up to the maximum amount) and will not incur any interest or payments until you tap into your business line of credit.
A business line of credit can provide small business owners with an extra source or funds when surprise expenses come up. With small business financing, you only pay for what you use. Business Loan Networks helps thousands of small business owners find the business line of credit that best matches their needs.
Business lines of credit come secured or unsecured. Secured lines of credit come backed by collateral such as inventory or accounts receivable. Unsecured lines of credit are backed by your personal guarantee.
Business lines of credit are also known as “revolving” credit because, like a credit card, you can tap into funds again and again. And, like a credit card, once you pay back whatever amount you owe, the total amount of funds available to you through your business line of credit increases by that same amount. For example, if you have a business line of credit totaling $50,000 and use $30,000, you have $20,000 of remaining funds available to you. When you repay that $30,000 (plus interest), your total line of credit again rises to $50,000. Or, if you payed $20,000 of the $30,000 owed (plus interest), you would have $40,000 available through your line of credit.
Business lines of credit tend to be better for repeated cash flow while traditional term loans work best for specific purchases. However, business lines of credit have the flexibility to apply toward business purchases, as well, including payroll, investments, larger purchases, and seasonal expenses.
A business line of credit’s greatest advantage is its renewability. With quick and easy access to these funds whenever you need, you can cover ongoing operating expenses, cash flow gaps, seize on unexpected opportunities, and deal with emergency or surprise expenses quickly and effectively.
Business Loan Networks is glad to help you find the right business line of credit for your needs. Explore our website or contact us to get started!