Access Revolving Capital with a Line of Credit
Lines of Credit
A business line of credit can give business owners access to working capital as-needed. Credit lines are especially helpful for seasonal businesses that may see a slump during part of the year.
Apply TodayAccess Revolving Capital with a Line of Credit
Line of Credit Overview
Lines of credit can be secured, using business assets as collateral, or unsecured, relying on the borrower's credit score to qualify. Secured lines offer higher credit limits and simpler qualification requirements than most business credit cards. Borrowers only pay interest on their balance in the account, giving them a low-cost way to address day-to-day expenses.
Seasonal
Landscaping, recreation, holiday, and other retail businesses see ups and downs in revenue throughout the year. But, their expenses don't always match the yearly cycle. A line of credit give these businesses an easy way to handle payroll, utilities, and more during the off season. When business is booming again, they can pay down the balance and free it up for next year.
Emergencies
No matter how well a business manages accounting, emergencies can crop up in the form of weather damage, vandalism, lawsuits, and injuries. While insurance covers some events, it can take months for claims to be processed. A line of credit can be there instantly, ready to take on immediate repairs and potential legal fees as soon as working capital needs arise.
Special Projects
Businesses that want to rebrand, host trade conventions, hire temporary staff, and launch special projects can use lines of credit to boost their working capital. All of their expenses can be covered with one line, simplifying accounting for the project. After the project's success, boosted revenue can go back into the account to prepare for the next big initiative.
Inventory
When buyer demand exceeds a business's supply, it can miss out on much-needed revenue. If a company can't bid on bigger, higher paying jobs because it lacks the materials and supplies necessary, it misses out too. Any business can use a line of credit to stock up on inventory quickly, without having to wait on traditional loan processing.
Key Features of a Line of Credit
Line of Credit Loan Highlights
Lines of credit offer flexible, revolving access to funds that can be used as needed for managing cash flow and unexpected expenses.
A credit line can be used multiple times, up to its credit limit.
Payments into the account free up the balance to borrow later.
Interest is only charged on the balance in the account.
Lines of credit can be asset-based or credit-based.
Your Path to Funding
Three Steps to Funding
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Benefits
Lines of credit provide businesses with financial flexibility, allowing them to borrow only what they need and pay interest only on the funds used.
This makes it an excellent option for managing short-term working capital requirements.
Lower interest rates
High credit limits
Bad credit can still qualify
Flexible terms
Points to Consider
Challenges
Lines of credit often come with variable interest rates, and businesses may face reduced credit limits or increased rates if financial circumstances change.