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Business Line of Credit
This revolving loan is a flexible line of credit available to businesses for the short-term. The best part of this loan is that companies can draw as little or as much of the available credit as needed. As they pay back the loan, the amount in the line of credit replenishes, thus giving them the same amount of credit limit to draw from. This way, businesses can access more funds as and when needed.
When to Apply for Business LOC?
Business Line of Credit is best applied and used for short-term working capital requirements.
- It can be used for purchasing inventory
- Repair and maintenance of business equipment
- Financing or marketing a campaign
- Maintaining business cash flow
Types of Business Line of Credit
The business line of credit is of two types:
- Secured LOC: Approved against short term collateral or guarantee
- Unsecured LOC: Approved against personal guarantee or a general lien
Both of these are short-term loans, but unsecured loans are limited to smaller amounts and require a strong credit profile to apply for. They also incur higher interest rates.
How It Works?
- When a borrower applies for a Business Line of Credit, they gain access to a small pool of funds.
- Whenever a business requires, it can draw money from that credit pool in lieu of monthly or weekly payments along with the interest rate.
- Furthermore, there can be an annual fee and transaction fee applicable to LOC.
How to Apply?
Applying for a business line of credit is a simple 3-step process:
- Simply fill out a form to contact our consultants.
- They will contact you to retrieve essential business information.
- We connect you to suitable lenders with the lowest premiums and guide you through the process.