Whether you’re a start-up floral shop or a seasoned e-commerce website design company, it’s important to have sufficient cash on hand to cover unexpected happenstances, capital expenditures, or even the ebb-and-flow of operating costs. While having enough savings to weather these very possible storms is always good advice, the next best thing is to have a business line of credit.
Here are a few good reasons to have a business line of credit.
1) To have cash on hand. To offset unanticipated dips in sales, lags in accounts receivables, or a temporary rise in inventory costs, business lines of credit are there for you to tap into during these passing events.
2) To have when disaster strikes. Of course, it is important to have business insurance in the event of a disaster, but having a line of credit may allow your business to continue uninterrupted until the insurance payment for damages arrives. A line of credit for your business is like having an insurance policy — except it doesn’t need paid until you use it.
3) Economic downturns. Many economic downturns are temporary. A line of credit for your small business can help you get through a rough period when consumers have temporarily tightened their purse strings.
4) Capital expenditures. Newly formed small businesses often need additional funds to make capital purchases, such as buying equipment, building up supplies, or stocking up on inventory. Business lines of credit enable the business owner to tap into extra cash to fuel business growth, grow sales, and expand his business.
5) Attractive fee arrangements. A great feature of business lines of credit are the fee arrangements. That is, typically interest is only charged on the amount of funds a business uses.
6) Seasonal ups and downs. According to the Small Business Association, a business line of credit is appropriate for seasonal businesses.
When you start a business you have a vision. A business line of credit can help turn that vision into a reality.
To apply for funding for your small business, use the form on the right to begin the application process.
For more information, go to Business Line of Credit at http://www.unsecuredbizloan.com/business-line-of-credit