Lines of Credit
Everyday expenses are a norm in every business. To handle it, you need a flexible financing solution that is readily available. Avoid the hassles of managing petty cash or short term financing applications every time you need to borrow. Get a line of credit and cover your expenses when you need to.
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What is a Line of Credit?
A line of credit is a credit account that is set for you to use at any time. It’s a form of revolving credit with a preset amount that you can draw from whenever you need it. There is usually a pre-established limit, and as you make payments into the account, the balance is freed up for use again. If your business requires recurring expenses or you’re unsure of the exact amount of funds you need on a monthly basis, a line of credit is the ideal solution.
Businesses can utilize a line of credit to smooth out seasonal ups and downs or improve working capital. Business owners also use the financing option as a backup plan for emergency expenses. It is a flexible loan option that lets you handle a wide range of business expenses, from purchasing supplies to handling utilities. Opening a line of credit even before you need it can really be of help for your business. Talk to us, and let us show you how to get started.
Secured Line of Credit
You can secure a line of credit against the value of your business assets. This gives you access to high-value loans and lower interest rates. Assets like real estate and equipment can be used as collateral to secure a line. If you’re looking to open a secure line of credit, we can guide you through the process and show you the best options available.
Unsecured Line of Credit
With an unsecured line of credit, you can get access to loans without using your asset as collateral. Because of the high risk involved on the part of the lender, unsecured lines require a high credit score and higher interest rates. It also has a low borrowing limit. If you want to secure a line of credit without collateral, contact us. We have a team of professionals who will work with you to explore available options.
Advantages of Lines of Credit
- Enjoy instant access to loans.
- Borrow more than once from the same account.
- Enjoy lower APRs than credit cards.
- Pay interest only on the amount borrowed.
- Free up funds for future use when you pay into the account.
- Get secured financing even with a low credit score.
Frequently Asked Questions
What is the difference between a Line of Credit and a credit card?
While a line of credit is a revolving credit option that gives you access to continuous loans, credit cards let you make purchases and pay later. Another significant difference is that a line of credit has a higher borrowing limit and lower interest rate.
Do Lines of Credit affect my credit score?
How you handle your line of credit can have an impact on your credit score. Your credit score will be improved if you make on-time payments. However, defaults in payment will affect your score negatively.
When is a Line of Credit not a good fit?
Usually, a line of credit maxes out at $250,000. If you’re looking to get financing for major expenses like vehicle fleets or real estate, you might want to look beyond a line of credit. Also, if you’re seeking short-term financing and your business doesn’t require recurring expenses or frequent borrowing, we can show you fitting financing solutions.
How do I find the best Line of Credit?
We can help you secure a line of credit that is favorable for your business. Whether you seek a secured line of credit or the unsecured option, we can find you the best deals from our expansive lender network.