Business lines of credit are very popular funding products used by entrepreneurs, small businesses and startups, with good reason. This credit line gives your company valuable flexibility and peace of mind when running your business. Working like a business safety net, the credit line allows you to draw on it up to your limit, only paying interest on the withdrawn amount. When you repay, you have the maximum available for your re-use as needed.
Your options for a business line of credit may include:
- Conventional: If you’re a well-established business with a solid credit score and history, you could qualify for a standard line of credit from a major bank. Ideally, business owners apply with the bank where they hold their business checking account(s).
- Invoice-based: This is also known as accounts receivable financing and bases the amount of credit offered on the dollar amount of invoices and the credibility of the customers you have invoiced. This arrangement allows you the freedom to access the money your customers owe you, almost immediately, even if they are actually not paying until 30, 60, or 90 days later.
- Collateral-based: In this asset-based lending option, you could get a secured credit line, tied to the value of your inventory or business equipment, which could be heavy earth-moving equipment, gym machines, or perhaps 3D scanning equipment, for example.
- Short-term: Short-term credit lines generally carry a higher interest rate and offer a lower credit limit—but give you a quick approval with less-stringent requirements. These are available from non-bank lenders.
Whether you need a credit line to pay operating expenses in the slow season, get emergency repairs at your business, and/or fund new business opportunities, turn to an experienced alternative lender and learn more about your options.
Look into a new business line of credit with Eagle Bend Capital. Contact us today.