7 Key Advantages of a Business Line of Credit
A Business Line of Credit is a flexible funding solution that provides you with quick access to cash whenever you need it. It works similar to a credit card—you get approved for a specific credit limit and can use what you need, when you need it. A Business Line of Credit is an extremely attractive solution for small to medium sized businesses who sometimes need access to capital to maintain their operations. Here are a 7 of the key advantages:
- Ongoing Access to Capital
Funds are always available whenever you need them, making a Line of Credit an excellent option every time you need extra capital. Since a Line of Credit is revolving, you can take some of if it or all of it as often as you choose. Once you’ve paid down the balance of the amount you’ve used, the funds replenish, and you can take them again without having to go through another application or approval.
- There Are No Prepayment Penalties
You have the freedom to pay off any amount you want early and without penalties or hidden fees.
You can use your Line of Credit funds for a variety of purposes and can draw any amount that you need, up to your pre-approved credit limit. Use the money for marketing costs, to purchase new software, to help you cover payroll, to manage a surprise expense like a broken piece of equipment, to stock up on inventory, or even to consolidate an existing debt.
- Only Pay for What You Use
Many small businesses set up a Line of Credit when things are going well in order to have a safety net in the event of hard times. You can use the cash whenever you need it, and you only pay interest on the amount you borrow.
- No Collateral Needed
With our Lines of Credit, there is no collateral required, meaning it is an unsecured loan.
- Low Interest Rates
Unlike business credit cards, Business Lines of Credit boast very low interest rates. Plus, after a few steady payments, you may qualify for an increase in your credit limit and a lower rate. The interest you pay on your line of credit may be tax-deductible.
- Peace of Mind
Many business owners like having ongoing access to available funds 24/7 in case of emergency. Being able to quickly withdraw those funds provides peace of mind knowing that you’re prepared for whatever life throws your way.
Here’s What You Need to Qualify for a Business Line of Credit:
- 600+ FICO Score
- Minimum of 1 year in business
- Minimum of $20,000 in monthly revenue
- 3 months of most recent bank statements
Not Sure If You Qualify for a Business Line of Credit?
We offer customized financial solutions for every business. You don’t have to fill out a tedious application, go through intrusive questioning, and then wait for 30-60 days for an answer. Just complete a few questions online or call one of our Account Executives who will guide you through a one-page application to secure the funding or equipment financing you need within as little as 2 business days.
Interested in Learning More?
A Business Line of Credit is a good safety net to cover temporary shortfalls. Whether you need capital to run your business, cover an unexpected expense, or buy equipment, ViewRidge can help you get the cash you need for your business to use however you’d like. Apply today and get approved in hours – there’s no cost or obligation and our single page application takes only minutes.