While no one wants to think of his or her business falling on hard times, almost every business owner hits at least a few bumps in the road on the way to success. A bump can be as small as a hiccup in finances or as major as an unraveling of your client base.
Unfortunately, if you are like most small business owners, you may not be prepared for financial hardships and may resort to using credit cards to pay for unexpected expenses. However, by choosing a business line of credit over credit cards, you can save significant amounts of interest and access your money hassle-free.
Think of business credit lines as a way of keeping cash flowing through a business without hang-ups. For example, not only do credit lines help with unforeseen circumstances, but they can also prevent you from having to pay unnecessary fees. Let’s say you do not have the money to pay your estimated federal taxes on time one quarter. The IRS may allow you to make the payment late, but it will cost your business a hefty late fee. With a business line of credit, you could have borrowed temporarily to pay the tax bill, and repaid the debt when you had the cash.
Qualifying for Business Lines of Credit
The lending restrictions surrounding lines of credit are not as lenient as credit cards and traditional business loans. A line of credit is usually unsecured and at total risk to the financial institution lending the money. In order to qualify for a business line of credit, you will need to have a well-established business with positive cash-flow and a plan for future growth or expansion. Provide your lender with information about how much money you think you will need access to, how you plan to use it and how you can guarantee a timely repayment.
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For more information, go to Business Line of Credit at http://www.unsecuredbizloan.com/business-line-of-credit