Change Your Financial Situation With Lines of Credit
Are you running short on working capital? Don’t miss out on a new client or an excellent investment opportunity, but take advantage of the flexible lines of credit available from reputable lenders. Find out what you need to know about credit lines and how you can apply for one today. Create a safety net for your company and keep it cash positive with the right financing.
A line of credit is a flexible, short-term financing solution that helps many startups get off the ground and more established businesses navigate slow seasons. Similar to a traditional business loan, your line of credit gives you a maximum credit limit with an interest rate and a term limit.
Unlike a traditional loan, a line of credit doesn’t start accruing interest right away. Once you’re approved, you have your credit available, but you don’t have to use it. Once you take out some or all of your available credit, then you start accruing interest. Pay the line of credit back and you can use it again for another situation.
You also don’t need to explain the particular ways you’re going to use your line of credit. A traditional loan typically requires a plan for how it will be used and how it will be repaid. A line of credit offers you security without requiring you to detail the exact ways you’ll need it. In an unpredictable market, this flexibility is crucial.
Reduced Collateral Risk
Consider an unsecured line of credit for even more flexibility. Many lines of credit are secured by a particular asset. It can be inventory, personal assets or a business property. An unsecured line of credit doesn’t have this requirement, so you can breathe easier knowing that you aren’t putting your vehicle, your home or your business property at risk.
Some credit lines require high credit scores, while others are backed by assets and don’t have a credit score requirement. Compare options for yourself to determine the best financing for your particular business model and situation.
Dynamic Resources for Any Industry
Spend your line of credit like cash. Your credit line is a short-term loan that you’ll need to pay back within a few years or even months of using it, but you can spend it just like cash on any business purchase you need. Respond rapidly to changes in your business plan, emergency repair costs and other issues with lines of credit for your specific industry.