Getting a business line of credit can be pretty difficult in today’s market. Many new business owners are turning to personal finance, such as a home equity line of credit, to pay for their business expenses. Today, we’ll be outlining how to get a credit line for your business from a major bank.
First, you’ll need to have excellent personal and business credit (if applicable). This means you can’t have any missed payments on major purchases. Also, your credit score should be high (at least over 700). There are niche lenders that will give you a business line of credit with less stringent requirements, but let’s focus on traditional banks for now.
In addition to your credit line, you’ll need one of two things. If your venture is a side business while you keep your original job, you’ll need to guarantee the credit line personally. On top of that, you’ll need to have adequate personal income to do so. This means proving your income with the proper tax documents.
If your venture is full-time, your company must have a strong enough record of revenue stream to support the loan payments. Typically, banks won’t lend to you if your expense to revenue ratio is over 85%, which includes payments on your credit line.
As you can see, the requirements for a business line of credit can be pretty steep for some people. However, if you qualify, you’ll have a low-interest source of income to draw from, when necessary. Many business owners use these to stabilize their daily operations or to pay for otherwise costly emergencies.
For more information, go to Business Line of Credit at http://www.unsecuredbizloan.com/business-line-of-credit/