A business line of credit is also called an operating line of credit. It provides small business the flexibility when the need arises to borrow short-term funds for the operation of business. A business line of credit is similar to a personal lines of credit, such as credit cards and home equity lines of credit. A specific amount of capital is authorized and the line of credit allows you to withdraw as much as you wish at any time under the maximum amount of funds established in the agreement. Overall, a line of credit has relatively lower interest rate and closing costs than any similar options.
There are secured and unsecured lines of credit, according to inventory or receivables. An unsecured line of credit requires healthy cash flow, thus it is better to apply for a business line of credit in advance. Payroll, inventory payment, seasonal costs or temporary cash flow shortages serve as the best scenarios to acquire business line of credit for more working capital. It is also important not to use up your line of credit over paying long-term investments, which limits the access of funds in an emergency. A line of credit does not incur the same amounts of interest and fees you would otherwise inherently have in comparison to the regular business loan.
A traditional line of credit may disqualify a business if it has a bad credit profile. Integrity Corporate Funding is a premier lender, providing lines of credits to small businesses with limited credit histories. Let our experienced and highly-trained professionals help you obtain the best financing solutions for the continued success and growth of your business. Contact us today for more detailed information. We can get your approved for a line of credit quickly and painlessly, with approvals in as little as 24 hours!