Business lines of credit provide flexible funding to support your small business as a safety net. If you’re in the type of business with a slow season, or you’d just like more peace of mind at any time, this funding option might be ideal for you.
Advantages of business lines of credit include:
- Helps establish a solid credit history for your company. Building up your credit helps you get ready for bigger things. When you someday need a larger line of credit or business loan, a good credit history will help you get approved and enjoy the best lending terms.
- Keeps you flexible for new opportunities that may come up. New business prospects often have a short timeline to get in on and you can avoid missing out with access to a business credit line.
- Charges interest only on the amount used. The credit line costs you little to nothing until you need to use it, so having it in your business arsenal makes sense. You don’t need to pay interest on your entire credit limit, but it’s there if you need it.
- Provides good ROI when used wisely. Since credit lines have higher interest rates than conventional secured loans, run the numbers to make sure your intended use makes sense. Credit is best used for short-term needs. For longer-term borrowing needs, you might try another funding option.
- Smooths out your cash flow in the off-season. You can use credit to make sure your seasonal business stays viable during slow times or unexpected downturns.
Running a new business or startup can be nerve-wracking, and consistent earnings can be a challenge. Business lines of credit can remove some of the uncertainty and sustain your business, and/or provide you with a fund you can use to expand or get in on timely business opportunities, so consider applying today.
Get a solid safety net for your company with a business line of credit. Contact the experts at Alternative Capital Source now.