If you run a small business, you might have many customers that owe you invoices at any given time. In such a scenario, you may find it difficult to keep your monthly cash flow under control from month to month. This may prevent you from paying for certain expenses or taking on certain opportunities. So what should you do if you are having trouble getting business lines of credit? We’ll discuss some choices, in today’s article.
The most common alternative to business lines of credit (although not necessarily the best) is to get home equity lines of credit. The reason for this is simple: If you have a newer company with limited revenue and history, it simply doesn’t have enough behind it to qualify for an unsecured credit line. At any rate, you certainly won’t get one of a size or with the interest rate you’d want.
A home equity credit line is based on a physical asset. As such, it represents much less risk to the bank. Of course, if you were hit hard by the recent housing crunch, you may not have equity in your property. That being the case, you won’t be able to use this option.
Another common solution is to increase petty cash, or available credit, in other ways, such as business credit cards. Although cards typically have higher interest rates than business lines of credit, they are typically easier to qualify for. If you are able to slowly build available cash on hand, that can be a great way to deal with monthly cash flow issues as well.
For more information, go to Business Lines of Credit at http://www.unsecuredbizloan.com/business-lines-of-credit/