A credit line can help when you have unexpected cash flow gaps or when you want to take advantage of opportunities that arise. A business line of credit was one of the top three most popular financing options among business owners who applied for financing.
Are you like many business owners seeking a way to have cash on hand when you need it? Considering a line of credit for your business could be a way to access that critical cash when needed. But how easy is it to actually get a business line of credit? Your chances of getting a credit line largely depend on a few things: your qualifications, the lender, and type of credit line you want.
Most banks and line of credit lenders will require businesses to have at least a few years of history and healthy revenue numbers to qualify for a line of credit. Larger lines of credit will sometimes require additional requirements, such as collateral or a personal guarantee.
This can all seem intimidating — especially if you’re a new business. To make the process easier, we’ve laid out five straightforward steps to securing a business line of credit.
The easiest form of line of credit to get for a business is a secured line of credit from a local bank or business credit card provider. The approval is guaranteed because the line of credit when working with a bank is secured by a cash deposit. The benefit to establishing this form of credit is typically the bank will report the positive payment history for the owner and business. Be careful with your credit decisions because those same banks will report the negative as well.
We help you take the guess work out the application process. SpotOn Financial is a brokerage with extensive lender relationships and can find you get shop your credit request without impacting your credit score or your ability to fund.