How To Get A Secured Line of Credit

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.

1. Review your credit score and finances. Your credit score and financial history are a big part of your business line of credit application. A higher credit score will give you a better chance of getting approved.
2. Compare your options. Compare your lending options to get an idea of how well you qualify for a business line of credit.
3. Check the requirements. Traditional banks tend to be harder to qualify than other types of lenders.
4. Know the cost. Some lenders are more costly than others. Make sure you know your interest rates and fees upfront from your lender.
5. Gather documents and apply. When you’re ready, gather and submit your documents and business information, and you’re done!