When your business needs some extra money, you may consider a business line of credit. A business line of credit is similar to a credit card. The line of credit is revolving, which means that a business can continue to take out money whenever it needs to. However, the funds borrowed total cannot exceed a set limit at any given time. As the business makes payments on its line of credit, it can borrow more money.
Businesses can use lines of credit for working capital or expansion. A business line of credit does not require a pledge of collateral, except in circumstances where the business’s credit rating is very low. The maximum amount available to a business on a line of credit varies based on the business’s income and credit score. To be approved for a business line of credit, the business must show that it is financially stable enough to make the payments. Most business lines of credit require monthly payments, much like credit cards do.
In some cases, your business may be able to make interest-only payments for a short time to help with cash flow. However, you can usually pay off your balance or make extra payments toward the principal at any time without owing a penalty. Most business lines of credit feature variable interest rates that change according to market conditions.
If you need a line of credit for your business, UnsecuredBizLoan can help you obtain it. Contact us today to see how much money your business may qualify to borrow.
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