Are you looking for flexible financing options for your business? A business line of credit might be exactly what you’re looking for. These flexible financing solutions can be used to cover almost every need you might have as a small business owner, and their unique interest structure means you only pay interest on the funds you use. Cheddarr specializes in helping small business owners secure the loans they need to empower their business. Contact us today to get started!
What Is A Business Line Of Credit?
Think of a business line of credit as financial insurance you can use to cover almost any business expense when it arises. It’s like a financial safety net for your business. Once you qualify for a business line of credit you can use it whenever you need to, but you aren’t obligated to use it unless you have to. The best part? You only pay interest on the amount that you use, not the full amount of your business line of credit. Once you’ve used your credit and repaid it, the full amount of funds is available to you again. It’s a win-win for small business owners.
Can You Get A Business Line Of Credit For A New Business?
Cheddarr can help you secure a business line of credit for your new business! Businesses typically need to be in business for 6 months or more to qualify, but lenders look at a variety of factors when deciding whether or not to issue a business line of credit. Cheddarr has access to a wide range of reputable lenders so it never hurts to give us a call. Contact us today to learn more!
What Do You Need To Qualify For A Business Line Of Credit?
As mentioned above, time in business is only one of the factors that will determine whether or not you qualify for a business line of credit. Lenders will typically want to see $50,000 or more in annual revenue to qualify for a business line of credit, and you’ll need to have a credit score of 560 or higher. It’s not uncommon for business owners to be required to offer collateral to secure the line of credit. You may be asked to levy personal assets like your car, bank account, or house to get the deal done.
How Does Interest Work On A Business Line Of Credit?
Since a business line of credit is designed to be a financial safety net for your business, you aren’t obligated to use the full amount within your loan term, and you are only required to pay interest on the amount you use. For example, if you are approved for a $50,000 business line of credit and you pull $30,000 of it to make a few crucial hires and renovate your office, you are only required to pay interest on the $30,000. This is what makes business line of credit one of the more attractive and flexible financing options available to small business owners.
Are you interested in securing a business line of credit? Cheddarr is passionate about helping small business owners secure the financing they need to grow their enterprise and conquer all of the challenges they face along the way. Get in touch with us today to get started!
