Business Line Of Credit: What Is It And How Can You Get One
A line of credit is a reliable source of funds small and medium-sized businesses can use to keep their cash flow steady. Using a business line of credit rather than a personal line of credit can save business owners a lot of trouble in the long run. Here is how you secure a business line of credit. Image source: british-business-bank.co.uk A business line of credit is different from a personal line because it allows a user to draw against a predetermined credit limit instead of getting the full amount at one time much like that of a term loan. Users also only pay interest on the funds they draw out and nothing more. Business lines of credit is offered by national banks or credit unions. Do expect high levels of qualification when applying for one. Banks usually require specific collateral while online providers can be more flexible. Creditors will need that the business where the line of credit will be used has been operating for over a year. You will also