A Revolving Business Line of Credit|No Collateral Required
As a business owner, you know that money is everything. Without it, your business idea will never get off the ground. And when you need funding fast, the last thing you want to do is suffer through the long and overwhelming process of qualifying for a traditional bank loan. That’s where we come in. We team up with creditors that provide speedy and simple online applications for a business line of credit that doesn’t require collateral.
Small Business Working Capital understands that time is of the essence when you need cash money for an emergency to cover payroll or invest in new equipment. That’s why we partner with lending institutions that have a fast approval process that is exclusively online. So, if you need funding fast, we can help you get the money you need to make your business idea a reality.
Frequently Asked Questions about Line of Credit.
What is a business credit line?
A business credit line is a type of business funding that can provide working capital to increase your business. It’s similar to a credit line in that you can borrow and pay back the funds as needed, up to your line of credit limit. The main distinction is that a business credit line is backed by your business revenue rather than your personal assets. This kind of funding can be a great way to get the cash you need to expand your local business without putting your business assets at risk.
Is a business credit line better than a Loan?
There is no conclusive response to this question as it depends on the particular money situation of the business in question. A business line of credit may be a better option for a small business that needs versatility in its borrowing, as the credit line can be used as called for, and there is no lengthy waiting period to receive the money. A loan may be a better option for a small business that needs a set amount of cash and better rates for a specific purpose, such as equipment purchases or real estate.
What are the requirements for a business line of credit?
Business credit lines can be a fantastic way to give your business some financial freedom. However, the qualifications for a business credit line can fluctuate from creditor to creditor:
You must have a 550+ Personal FICO score.
$15k+ in monthly revenue for three consecutive months.
Have a business in the USA for 1+ years.
Satisfying these requirements, you should be well on your way to securing a business line of credit.
Is it difficult to get a business line of credit?
It can be challenging to get a business line of credit with a more traditional loan provider, but it depends on the creditor and the business’s credit history. Traditional Lenders will take a look at the company’s credit report, credit history, and profitability to determine whether to give them a line of credit. However, our lending institutions give more weight to your month-to-month income than your credit score and do not call for collateral, as do conventional lenders. If you have a regular monthly income above $15K and a credit score of 550 and above, you will have a real chance of acquiring a line of credit up to $100K.
Is a line of credit a good idea for a small business?
A line of credit is a terrific alternative for local businesses. It allows you the freedom to draw funds when you need them, and you only pay interest on what you use. This can be an excellent asset to your company, giving you the capacity to cover unexpected expenditures, finance equipment, buy inventory or take advantage of opportunities when they arise.
However, it’s vital to remember that our line of credit is a cash advance on future revenue, so you will need to be diligent about making payments on time and keeping your balance manageable.