Lines of Credit
Open a business line of credit to manage working capital, meet everyday expenses, and to make payroll and cover invoices. Lines of credit come with more flexible spending than business credit cards making everyday management decisions a snap!
Is a Line of Credit?
A business line of credit is a revolving loan granted to a business based on criteria such as time in business, annual revenue and asset value (sometimes) leveraged to reduce interest rates or increase credit limits. Business credit cards are helpful, but they won’t cover many expenses such as utilities, rent or payroll. A line of credit works as part of your working capital budget to smooth out cash flow throughout the year.
Secured Line of Credit
Because a line of credit is a loan, securing it with assets has two benefits: higher credit limits and lower risk for the lender, which translates to better rates for you.
Unsecured Line of Credit
An unsecured line of credit carries with it higher risk for the lender. Approvals are more difficult to achieve, but for borrowers that won’t carry a balance, this can be a great option to avoid becoming overleveraged.
Non-Revolving Line of Credit
This is a one-time balance up to a total credit limit. You can draw a portion of the balance, and as you repay it, unlike a revolving line, that portion is unavailable for a subsequent draw. This kind of line is useful for one-time projects.
How do I apply?
May I open more than one line of credit?
Do all businesses use lines of credit?
When is a line of credit not a good fit?
ADVANTAGES
OF a LINE OF CREDIT
A line of credit can cover expenses not allowed under a credit card.
Funds can help even out cash flow during slow months prior to a seasonal boom.
Access lower interest rates than traditional business credit cards.
Increase borrowing limits by providing collateral to reduce lender risk.
Address
11844 Bandera Road, Suite 520
Helotes, TX 78023