Business Line of Credit

Find the Lowest Rates for Business Line of Credit

What is a Business Line of Credit

In small business loans and financing, you will run into multiple options that you may qualify for. It’s important to know which of those programs is geared toward what your business needs financially. One of those options is a business line of credit.

Unlike a loan with a term line, which provides a lump sum up front, a business line is more flexible. It works similar to a business credit card in that you have a pool of funds that you can draw on as you need up to your credit sum limit.

This product usually has a principal amount and interest that accrues, but you are only responsible for paying interest on the current balance once payments are due. These rates and costs vary depending on the borrower’s credit and qualifications.

Both banks and online business lenders offer this product. However, banks have tighter qualifications than online lenders. Online lenders have better approval rates with less stringent qualifications, but charge higher rates than banks because they take on greater risks.

Who can qualify for a Business Line of Credit?

The qualifications will vary depending on the lender. However, the minimum qualifications typically are:

  • A minimum of 6 months in your business
  • Credit scores above 500
  • An average of $200,000 in your annual revenue

Although online lenders have an easier approval process with less documentation required than that of traditional lenders, you will still need to provide some data to back up your statements. Common documents that may be needed to qualify include, but are not limited to:

  • Bank Account Statements
  • Tax Return (if applicable)
  • Profit & Loss (if applicable)
  • Balance Sheet (if Applicable)
  • Accounts Receivable/Payable (if applicable)

*requirement varies depending on the Bank, Business Lender, or Funder.

What We Do

At AdvancePoint Capital, we offer multiple financing programs so that we can find the one that works for your small business’s needs. Here’s what a line of credit might look like if you qualify:

Eligibility Requirements:

  • A simple one-page application
  • Paperwork
  • Business bank statements for review. (We focus on gross sales, not primarily profit/loss!)
  • Credit

All credit types are considered, from excellent to poor.

The fast, convenient and straightforward way to get the money you need for your business – now! Get your Quote Today by filling out our simple form.

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Basic Features:

Loan Size

Flexible business lines of credit up to $100,000

Term

Repayment terms over 12 months

Payment

Flexible cash when you need it

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Why Should I Choose a Business Line of Credit?

The simple answer is that it’s flexible!

Most established businesses and business owners need and want a business line of credit due to the fact that there is a lot of flexibility in how they can withdraw the money. They use it as they need it and only pay interest rates on the balance owed, meaning they don’t have to pay large sums of interest on a balance that they didn’t need at the time.

This is a great product for quick use of money and a fast return on the investment of the capital.  In fact, business lines of credit are commonly used by manufacturers, contractors, and many other businesses that are going to use the loan funds as an investment. They will invest their borrowed money into purchasing products that will then be sold at a profit within a short period of time.

Keep in mind, in most cases this product has safety features for the lender intact. They can review your account when you make a withdrawal, quarterly, or annually to verify your credit rating. Because of this, your credit limit can change. This can be a great benefit because as your business grows, your credit limit can grow, too.

Many popular uses include:

  • Instant access to money on demand
  • Increased inventory
  • Solutions for emergency cash flow issues

Documents that are necessary to qualify for this type of loan may include:

  • Bank Statements
  • Tax Return (if applicable)
  • Profit & Loss (if applicable)
  • Balance Sheet (if Applicable)
  • Accounts Receivable/Payable (if applicable)

*documents vary depending on Bank or Business Lender or Funder

These days, getting approval for a business line of credit can be an easy process if you are dealing with the right company. With the advent of technology and automated underwriting processes,  it has become simple to apply and qualify from the comfort of your own home.

Banks still have more traditional methods and typically have the toughest standards and qualifications as well. With their strict application process that can take up to 30 hours to complete and their lengthy approval or denial time, you might not know if you are approved for the funds for up to 90 days, and even then you will have to wait to have access to the cash.

Depending on what you need the funding for, this could be a great loan for your business. However, certain needs and uses for money for businesses are not suitable for this product. There may be a better financial product available for you, so check out how to find the Best Small Business Loans to weigh all the benefits and evaluate the decision to get funding for your business.

The fast, convenient and straightforward way to get the money you need for your business – now! Get your Quote Today by filling out our simple form.

Get Quote Now!

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* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.