Business Lines of Credit
A business line of credit is a type of small business loan that provides funding to draw from whenever you are in need of some capital. This type of funding allows you to access money to handle cash flow gaps, buy inventory, and address emergencies or opportunities that may arise.
The beauty of lines of credit is that you will only repay what you withdraw with an agreed upon interest rate and repayment term. Bad credit is not a deterring factor and will build your business credit along the way.The downfall to this is that with a lower credit score comes higher interest rates. Younger businesses can qualify for short term lines of credit, medium-term lines of credit are tailored more for companies with good credit and a more solid financial history.
Flexible financing is essential because mistakes and accidents happen within businesses that can set you back tremendously. One of the most significant advantages of having a business line of credit is its ability to renew after you’ve used the money.
Flexible financing is essential because mistakes and accidents happen within businesses that can set you back tremendously. One of the most significant advantages of having a business line of credit is its ability to renew after you’ve used the money.
Much like a credit card, you can draw funds, pay them back with interest, and draw again. The flexibility of a line of credit is a valuable asset for a small business owner because it is a safety net for unforeseen obstacles and an extra advantage for opportunities.
