A business line of credit is flexible short term working capital that can be utilized to access capital for the short term to smooth out cash flow gaps, cover seasonal dips in your business, pay suppliers or payroll, purchase inventory, or handle unexpected emergencies. A BLOC is not for long term investments, permanent expansions, or if you are spending more than your business revenues that are coming in.
How A Business Line of Credit Works:
Works like a credit card with revolving access so that you can draw funds as needed and back it back and can access again without having to apply for a new loan.
Interest charges only on what you use. On a term loan interest is charged for the entire amount of funds borrowed. A BLOC only charges interest on specific amount you withdraw from your credit line.
Balance Replenishment. As you repay the borrowed amount, your credit limit line increases back to your maximum amount of credit offered. Acts similarly to a credit card. Can be utilized repeatedly.
Key Types:
Secured collateral requires assets such as real estate, cash, accounts receivables for lower interest rates and high credit limits.
Unsecured does not require collateral, but often has higher interest rates.
Revolving vs Installment
Revolving accounts combine draws into a single balance with payments.
Installment accounts recognize each draw as a separate mini-loan with with a fixed payment schedule.
Minimum qualifications:
- 6 months or more time in Business
- $10,000.00 + Monthly Gross Sales
- 600+ Minimum FICO Score
Overview:
- Same Day Funding in most cases.
- Amounts to 5 million
- Flexible Repayment Terms
- Interest Only Paid On The Amount Used
- Can be used for cash flow management
What We Need From You.
A signed application
Last Six Months of Your Business Bank Statements
Don’t see your industry or business type listed, reach out anyway. We fund all types of businesses, the numbers have to make sense for funds availability.