4 Reasons To Get A Business Line Of Credit

One of the biggest challenges many business owners face is cash flow. A very popular solution is to obtain a short term business line of credit. In addition to helping with the day to day operations, a line of credit can help with meeting payroll, buying supplies, purchasing new equipment, or just an increase in working capital.

What exactly is a business line of credit?

To put it in simple terms, a business line of credit is when a merchant lender offers a business owner a specified amount of money, that is always available to use when you need it. The repayment terms can be as long as five years, and as short as 30 days. There are no fixed monthly payment amounts, but interest does accumulate and is capitalized just like any other form of credit. The business owner makes payments on the business line of credit, but only on the amount being used. When that amount has been paid it becomes available again. So the original credit limit can be used over and over again, up to the maximum limit.

Having the ability to access cash at a moments notice, is essential for your business to succeed. There are lots of different ways to obtain funding for your business, but not many that offer the benefits of a business line of credit. Here are 4 distinct benefits of a business line of credit.

1 ) Flexible Repayment Options--A traditional loan has a set monthly payment plan that can create challenges if you have a slow month of business. The benefit of a business line of credit, much like a credit card, is that you can pay the minimum amount due. No calling your bank and begging for extensions.

2 ) Instant Cash On Demand--With a traditional loan, you have to go to the bank and re-apply every time you need some cash, which is a time consuming, long process. Whereas with a business line of credit, you have access to your line of credit immediately, whenever you need it. It is quite common for a business to have it's up and down times with cash flow, but you can keep it running smoothly by injecting cash whenever you need to.

3 ) Builds Your Business Credit--It is essential to your business to have  good credit ratings with all of the major credit bureaus. A business line of credit will report to all of the major credit bureaus, giving your company a good credit rating on your business credit report. Having a good business credit rating will allow for flexibility with any future financing needs.

4 ) Your Choice How To Use It--A traditional bank loan limits what you can use the funds for, as it is given for a specific use. A business line of credit allows the business owner to use the money any way he or she chooses. Often times the business line of credit is attached to a credit card. The credit card can be used to make purchases just like any other credit card, or the card can be cashed out in the event that your purchase requires cash.

With the ability to purchase whatever you need for your business, it can get confusing keeping your personal and business accounts separate. No worries with your business line of credit, because all of the funds come directly from your business checking account, making it easy to keep your business purchases separate from your personal purchases. 

If flexibility is what you're looking for, a business line of credit is perfect for your business. When you need cash, and you don't have time to collect endless amounts of paperwork, or wait 3-4 months for a decision to be made, Small Business Capital US can help you obtain a business line of credit in 5-7 days, not months. By completing our simple "Business Loans Application" and uploading 6 months bank statements, you will be on your way to a flexible business line of credit fast. Relax...let us worry about the money, you just focus on running you business.

For more information just give us a call at 800-681-0834 or click the button below to request a free quote!

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