Business Line Of Credit
Loans With Proportions!
Is your regular business loan lacking flexibility? Don’t worry, the Business Line of Credit is the best solution to it. A business line of credit is a small fund advanced to short-term businesses varying to their needs. With a business line of credit, you can avail business loan upto a specified limit that depends on the financial institution you are availing loan. The major benefit of this kind of loan is that your interest is only on the portion or amount of money you borrowed. A business line of credit can be a worthy means for small ventures that take a vital way to ensure they have an approach to the sources they need to meet day-to-day working capital requirements and fill other short-term financial emergencies. It enables them to apply and qualify today for borrowed capital they may need down the road. Many ventures use a line of credit as a portion of a large principal access strategy, including short-term and longer-term funding to fuel growth and fund other revenue-generating plans.
Types Of Business Line Of Credit
Secured Business Line of Credit
This is the most popular type of business line of credit. This kind of line of credit demands collateral in lieu of credit services offered by the financial institution. Since a business line of credit is a short-term loan type, the lenders basically demand short-term business assets such as inventory and marketable securities, etc., instead of liquid assets such as a house, business premise, etc. If the borrower defaults on the loan, the financial institution seizes those assets to obtain the balance amount.
Unsecured Business Line of Credit
This is the most availed type of business line of credit. As the name itself says, this kind of LOC doesn’t demand any collateral to secure the loan. Though this kind doesn’t require any specific assets to secure the loan, it requires an influential credit score and a positive business track record. Also, this kind of LOC involves a personal guarantor or lien to avail of the loan due to the absence of collateral. A personal guarantor gives the financial institution the right to seize your personal assets, such as your home or business premises, etc. if you cannot repay the loan.
How To Apply For A Business LOC?
- To begin, fill the online application form with the correct details and apply.
- Once your form is received, our relationship manager will assess it and get back to you to understand your business requirements.
- After analyzing your business needs, we will suggest the possible loan types that suit your budget and business needs.
- Once you have finalized the type of loan, the documentation process begins. You might need some documents like a license, bank statement, tax returns, etc.
- Once the documentation process has been done successfully, the loan amount will be credited to your bank account within 24-48 hours.
Advantages Of Business Line Of Credit
Enhances Cash Flow
Almost all business ventures use a business line of credit as a medium to improve the cash flow in their working capital. Cash flow is usually high during seasonal sales. Still, during unseasonable times the company may run short of cash which generally affects the operating expenses of a firm, like salaries to employees. A business LOC is a practical and effective solution to this business problem.
Upgrades Business Versatility
Many times you get the opportunities to expand your business or crosscut the costs to increase profits. But lack of finance or cash flow hinders you from grabbing those opportunities. A business line of credit acts as a strong tool to grab those offers and opportunities and benefit your business by maximizing your revenue and minimizing your costs.
Just Pay For The Amount Used
The major advantage of a business line of credit over short-term loans is that with this kind, you just pay interest on the amount you have used, not the complete amount you have availed. Different lending institutions have different norms; depending on them, you can repay the remaining balance anytime without prepayment fines or charges.
Strengthens Credit Score
You need a strong credit score and a positive business track record for availing any kind of loan. This is another advantage of a business line of credit: it helps build a strong business credit score. Either you avail a personal loan or a commercial loan, this medium will assist you to boost your credit history, simultaneously building a positive financial track record.
Fill out our Quick Apply application.
2. We review your application
We review your goals and present you with programs matching your needs, getting an offer in 24 hours.
3. Receive funding
Choose the program that fits you best and receive funding within 48 hours.
Why Choose Us?
In older times, it was difficult to get funding options or loans for small businesses like agriculture. But the scenario has changed now. Agricultural networks like us strive to provide you loans by understanding your business and personal needs and saving you from paying high-interest rates to moneylenders or informal sources.