My Business Credit Lines

How to Obtain a Small Business Line of Credit

A small business line of credit is a flexible financial tool that helps aid businesses, allowing them to grow if they use these loans to their full potential. These revolving credit lines are inexpensive and businesses are only required to pay interest on the amounts they borrow.

 

What can these loans be used for?

 

  1. Remodeling, upgrading and expanding businesses, facilities and offices;
  2. Buying new technology equipment, such as servers, computers and office technology;
  3. Purchasing extra inventory for seasonal spikes or upcoming promotions;
  4. Launching new online marketing campaigns;
  5. Creating new product prototypes or pursuing promising business opportunities; and
  6. Covering any unexpected expenses that may arise.

 

There are many different types of short-term working capital loans that are offered to small businesses.

 

  1. Seasonal Lines – A business cash advance can be used to finance seasonal increases in inventories and labor costs. These costs can be revolving or non-revolving.
  2. Contract Line – This includes the direct labor and material cost that is associated with performing assignable contracts and can be either revolving or non-revolving.
  3. Builders Line – Small general contractors or builders can use funds for commercial or residential buildings, which can directly help to finance material or labor costs. The building project can serve as the collateral loan, which can also be revolving or non-revolving.
  4. Standard Asset-Based Line – Asset-based revolving lines of credit for businesses are used to help businesses meet the necessary credit standards associated with long-term credit. This helps provide cyclical growth for financing both recurring and short-term needs. Repayment options include converting business’ short-term assets into cash, which then helps repay the lender.
  5. Small Asset-Based Lines – These types waive some of the stricter servicing requirements, provided businesses can prove they have the necessary cash flow for full repayment options.

 

To help improve long-term credit, businesses can follow the tips highlighted below.

 

  1. Try to avoid carrying constant credit line balances.
  2. Obtaining a credit line is a business’ cash flow.
  3. If businesses do not qualify for standard credit lines, request asset based lines.
  4. Set up business lines of credit before businesses are actually in need of using the credit.

 

References:

  • http://www.bizbest.com/how-to-get-a-small-business-line-of-credit/

 

My Business Credit Lines Agencies

My Business Credit Lines has over 500 Business Lenders around the United States that offer different types of business funding. We do all of the searching for you so you can have access to lenders in your area all in one place. Any of the lenders will be able to help get you the credit line you need to get your small business off on the right track to success.

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