There are some things that make business lines of credit unique. The funds are borrowed on behalf of your company. Also, approval and the size of the credit line may be based in whole, or in part, on your company’s projected revenue, profit, and expenses. We’ll be discussing some similarities between a business line of credit and other lines of credit, in today’s article.
The most common form of credit line is the home equity line of credit. Just as the name sounds, the amount of home equity you have determines the amount you can borrow (including other factors such as credit score, income, debt load, etc.).
Most of these factors are shared by business lines of credit. In fact, sometimes you will use your company property to secure your credit line. With loans, you borrow the money once, and you are funded all at once. With business lines of credit, you have an amount of money available to you, instead.
When you get approved, the lender will also establish your draw period. This is the period of time you are allowed to draw money from the credit line. Typically, this will be in the range of ten years.
For more information, go to Business Lines of Credit at http://www.unsecuredbizloan.com/business-lines-of-credit/