What are the benefits of a Business Line of Credit?
As a small business owner, having access to additional capital is never a bad thing. A business line of credit gives you the ability to use funds out of what your normal operating expenses allow. Similar to a checking account, you don’t have to use all of your funds at once. Instead, you can use what you need to, when you need to and save the rest of your funding for a later date. This corporate line of credit is not only extremely useful but also provides business owners with peace of mind, knowing that they have extra cash if they ever need it.
How to use a Business Line of Credit?
The advantage to a line of credit lies in its flexibility, giving business owners the best of both worlds. Borrowers can request a certain amount, for example, $5,000, but are not under any obligation to take or use that entire sum. So, if the borrower only needs to access $2,500 of that agreed upon maximum, they can, with half of the balance remaining for use at a later date. The borrower also has more flexibility than a loan in the repayment of the fast business funding, often given the option to make a minimum monthly payment or to pay off as much of the line as they would like.
Most lines of credit are revolving accounts, and no, that doesn’t mean that your head will spin in circles. A revolving line of credit simply means that the borrowing and replenishing of the account works like a giant circle. A merchant can draw from the account at any time until the maximum amount is reached, and when repayment is made, the merchant can then apply for a replenishment of their business line of credit. This allows them to fund accordingly in the event of equipment repairs, unforeseen damages or simply to add needed working capital in preparation for a busy season.
In most cases, lines of credit are unsecured. Fast Capital 360 never asks credit recipients to pledge any collateral for our easy online business loans and lines of credit. However, certain cases do apply where the lender can issue a “demand line of credit,” meaning that the lender can demand repayment of the loan at any time.
You can contact our small business experts six days a week to help you get approved quickly. We work with you, even if your overall business health isn’t the best. We work with you to make sure you have all the help and support you need to get to the next level in your business development.
The Fast Capital 360 Difference
- Borrow up to your limit or as needed
- Only pay interest on what you withdraw from your line of credit
- Applying is free and there is no obligation to withdraw a single dollar
- Apply in minutes, receive a decision in hours, get your funds in as little as one business day
- No hidden fees or surprises, just straightforward agreements
- Our underwriting process allows us to make decisions based on more than just your credit score
Credit lines for businesses are one of many different funding options we have available. Whether you’re searching for the best trucking business loans or another form of unsecured business loan, Fast Capital 360 provides lending services to thousands of companies throughout the U.S.
For more information on why Fast Capital 360 is the best choice for your small business, contact us today at 800-735-6107.