Lines of credit offer easy access to working capital on your business’s schedule. They can be compared to business credit cards, but typically have higher credit limits and lower interest rates.
Lines Of Credit
Lines of credit offer easy access to working capital on your business’s schedule. They can be compared to business credit cards, but typically have higher credit limits and lower interest rates.
Understanding
Lines of Credit
Once approved, you can tap into a line of credit as often as needed to handle expenses like payroll, supplies, and travel. Use your balance up to your credit limit. Payments into the account free up the balance to use later. A line of credit doesn’t restrict you to one specific purchase like a real estate or equipment loan, making it one of the most flexible financing options available. Secured lines of credit use assets as collateral, which can increase your credit limit and lower your interest rate. Unsecured lines of credit let you borrow without risking your company’s assets. Speak with a broker to explore more options like non-revolving lines and no-recourse lines. Let us show you how to put a line of credit to work for your small business.
How to
Effectively Apply Funds
Lines of credit are known for their flexibility and ease of use. Companies with cyclical sales revenue turn to lines of credit to smooth out the year, borrowing when sales are down and paying into the line when sales recover. They allow business owners to handle expenses like rent and utilities during the off-season and avoid late fees and penalties. When business is bustling again, the company uses the cash influx to help pay down the line for future needs. Lines of credit are also good to keep on hand for emergencies. Since most lenders don’t charge interest on a zero-balance account, you can keep an open line of credit at little to no cost.
Our Services
Rebranding
Trying to give your business a fresh new look? Maybe you want to boost your brand recognition. Handle the cost of a new design with a line of credit. You can manage graphic art, printing, and a marketing refresh today without paying for it today. Ask us how to put a line of credit to work for your brand.
Special Events
Hosting a conference or putting on an employee appreciation event can help increase your company’s visibility and boost morale. Booking a venue, creating marketing, and hiring a caterer are just a few of the expenses that go into putting on special events. Keep them from digging into your budget by tapping into a line of credit. We’ll show you how.
Payroll
If you need to up personnel to cover your busy season, use a line of credit to tackle the additional payroll costs. Lines of credit work great to cover payroll expenses when cash is tight and let you onboard talent when you need them most. Invigorate your sales team to bring in more revenue and handle payroll on your terms.
Ready to start your financing journey?
Our pre-application process is simple. Your information helps us position you for financing so we can provide an overview and some initial options on our first call. Click the button below, fill out the simple form (no hard credit pull required) and we will connect with you soon!
F.A.Q’s
Get Informed
Is a line of credit the same as a credit card?
Lines of credit are similar but not the same. Most credit cards are unsecured, which means lenders take more risk. To compensate, they charge higher interest rates and lower your credit limit. Since you can secure a line of credit with hard assets, most lenders offer lower interest rates and higher credit limits than with credit cards.
How do I access funds with a line of credit?
The answer depends on your lender, however most offer easy access via your online account, ATMs, and cards. Lines of credit are just as easy to access as your credit card or bank account.
What is a no-recourse line of credit?
With most lines of credit, lenders can collect on collateral if the borrower doesn’t pay back the loan. If the collateral isn’t enough to cover the debt, the lender can then seek additional business assets and even personal assets. A no-recourse line of credit limits the lender to the collateral used to secure the loan and restricts them from seeking outside assets.
When is a line of credit not the best choice?
While there are many types of credit lines, they’re not always suited to every business need. They’re most often used to tap into working capital and may not be the best choice if you’re looking to fund CRE, equipment, or construction. Ask a broker about targeted loans specifically designed to handle these expenses.