Business Lines of Credit
How a Business Line of Credit Works
A line of credit provides a flexible and reliable source of funding for your business, offering a financial safety net. You can draw on the available funds as needed, with no obligation to use the entire amount. Interest is only charged on the withdrawn amount, and as you repay, the funds become available again. A line of credit can also positively impact your credit score.
Once approved, you'll have access to a pool of capital, similar to a credit card. Whenever needed, funds can be deposited into your business checking account, allowing you to cover expenses, capitalize on opportunities, or manage cash flow. This flexible financing option gives you control and peace of mind.
Qualifications
Minimum Credit Score: 620 (or equivalent) to demonstrate a good credit history and ability to manage credit.
Business Age: At least 1 year (or 2 years) in operation to show stability and a proven track record.
Annual Revenue: Minimum of $100,000 (or $200,000) to indicate sufficient income to support loan repayments.
Cash Flow: Positive cash flow or a clear plan to manage cash flow to ensure timely loan repayments.
Collateral: Ability to provide collateral (e.g., assets, equipment, or a personal guarantee) to secure the line of credit, if required.