Business Line of Credit

What Is a Business Line of Credit ?

 

A business line of credit provides your company with a fixed amount of money you can use for short-term operating expenses, such as paying suppliers or meeting payroll. You are free to use as much money as you need up to your limit.

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As you pay back what you've borrowed, a revolving business credit line lets you borrow more cash without having to apply for another line of credit. If you make at least minimum payments and stay under your limit, you can use your credit line for as long as permitted under your lender’s terms.

 

Is a Business Line of Credit Right for Your Business ?

 

They are meant for business expenditures that you will repay within months or a few years. A business line of credit is better in uncertain times, such as when you might struggle to predict revenue and expenses.

Line of credit applications are generally approved and funded within 48 hours. Although credit does play a crucial role in the approval process, and may not be suitable for businesses with poor or no credit history.

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