Business Line of Credit

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According to the Federal Reserve, 40% of businesses struggle to pay operating expenses, which is the top financial struggle for businesses. A Line of Credit helps cover any and all operating expenses to ensure long-term success.

What is a Business Line of Credit?

Unlike a standard loan, a business line of credit works similar to a credit card, which many may know as “revolving credit.” Business lines of credit are helpful to business owners because it can help financing ongoing business expenses. When lenders offer you a business line of credit, the lender will set the credit limit as to how much you can borrow at a certain time. Borrowers are then able to repay the amount or borrow more, in accordance to their credit limit. For example, if a borrower was given a line of credit of $100,000, they are able to borrow up to this limit and can pay back the amount borrowed, and borrow again. One advantage that a business line of credit has over a standard loan is that it offers flexibility for the borrower, which is especially helpful for those who are business owners. There are many expenses a business incurs, and a business line of credit may offer the convenience of borrowing and repaying multiple times, whereas a loan would offer a one-time borrowing and repayment plan.

Lines of credit also include small business lines of credit, which are similar to small business loans. These small business lines of credit are unsecured and can offer lower lines of credit without the requirement of collateral. Since lines of credit do not have to go towards a certain purchase, the flexibility is helpful for small business owners to manage cash flow. For larger lines of credit, lenders may offer secured lines of credit, which require the use of collateral or a blanket lien on assets.

Business Line of Credit Features

  • Approval Amount: $20,000 – $250,000
  • Term Length: 6 – 12 Months
  • Minimum Credit Score: 630
  • Monthly Revenue: $20,000 avg.
  • Time in Business: 1 Year
  • Cost of Capital: 6% – 18%
  • Time to Approval: 24 Hours
  • Time to Fund: 1 – 2 Days

Benefits of Business Lines of Credit

  • Pay only for the money you use
  • Fast and easy online application
  • Early payment discounts
  • Low interest rates
  • Flexible loan terms
  • No collateral required on small Lines of Credit
  • Build business credit

Business Line of Credit vs Term Loan

Unlike Term Loans, Business Lines of Credit allow borrowers to withdraw money whenever they need to. Instead of one lump sum amount, a Line of Credit works like a credit card. LOC’s give borrowers flexibility to take out as much or as little as they wants as long as they don’t exceed their maximum credit amount.

Lines of Credit help you cover the day-to-day expenses of running a business whereas a term loan is usually used for larger purchases and investments for your business. Term loans have fixed payments terms on specific dates, making them much less flexible. 

Business Line of Credit vs Business Credit Card

A Business Line of Credit works like a credit card except Business Credit Cards often come with higher interest rates and additional fees for cash advances and balance transfers. Additionally, credit cards often require monthly payments when some Lines of Credit don’t.

Credit Cards usually are unsecured which means they may require a personal guarantee. This makes you personally liable for any unpaid debts.

Secured vs Unsecured Lines of Credit

There are two types of Lines of Credit: Secured and Unsecured. Unsecured Lines of Credit require no collateral, which speeds up the approval process to get you the funds much quicker. 

Secured Lines of Credit do require collateral but offer higher borrowing amounts. Most small businesses prefer an unsecured line of credit when they are just starting out. 

How To Use Your Business Line of Credit

When you get a Line of Credit through Opportunity Business Loans, you will be able to use your new financing any way you'd like. We do not regulate how you can use your funds. This means that you can use your Line of Credit to cover any and all business expenses. Below are the most common ways our customers use their lines of credit to grow their business, expand their market share, and boost profits.

Operational Expenses
Most businesses use their line of credit to support operational expenses like supplies, payroll, or increasing inventory.
Seasonal Periods
Some businesses go through seasonal periods where sales are lower. These businesses often rely on an unsecured LOC as a source of off-season working capital.
Cash Gaps
One of the most common ways to use a Line of Credit is to bridge cash flow gaps.
Hiring New Staff
It is essential to expand your team as your business grows. To do this, you will need to hire new employees, which comes with more payroll. You can cover this necessary expense using a Line of Credit.

Working With Opportunity Business Loans

When you get a loan through Opportunity Business Loans, you will receive a variety of benefits that help take your business to the next level by boosting profits, increasing customer base, maximizing market share, and expanding product inventory and services. Give us a call today or fill out our online application form to get access to the following features.

Flexible Funds
With our Small Business Lines of Credit, you get to decide when to use your funds and how much to use. You can withdraw the capital you need whenever you need it.
Transparent Terms
An important part of a convenient loan is transparency. We make sure that you completely understand all aspects of your new credit line that offers simple payments. This ensures that there will never be any surprises.
Simple Process
Our simple online application and approval process is industry-leading in speed and simplicity. Enjoy the stress-free process of getting your loan today with minimal paperwork and fast funding.
Personal Assistance
We have a team of customer service representatives that are available 24/7 to help support you with any questions or concerns that you might have. They would be happy to explain anything so that you can completely understand your new loan.
Business Credit Building
A Business Line of Credit is one of the best ways to build your business' credit. This will help your business access more funding opportunities in the future.
No Prepayment Penalties
When you get a loan through Opportunity Business Loans, you will never have to worry about unexpected or prepayment penalty fees. This means that you can payoff your loan any time you'd like.

Get Business Financing Today

In just 3 easy steps, you can explore your financing options.

Step 1: Just one simple application

Start by filling out our fast application where you can tell us about you and your business. With just one simple application, you'll have access to over a hundred different lenders.

Step 2: Match with the best lender

After submitting your application, our advisors will evaluate your business profile and match you with lenders who can offer the best financing for your business.

Step 3: Select and receive the best financing

Review all your different financing opportunities with an advisor at hand. With so many opportunities at your door, you’ll find the best one to meet all your business needs.

Business Line of Credit with Opportunity Business Loans

If you’re looking to finance your business through a business line of credit, apply with Opportunity Business Loans. We can give you a better chance of qualifying for business line of credit financing by connecting you with hundreds of different lenders within our large network. With so many different lenders, you’ll have a greater chance of successfully finding the right type of financing for your business. When you apply with us today, we’ll do most of the work for you so you won’t need to go from bank to bank or fill out an enormous number of applications. Just fill out one form with us, and over a hundred different lenders will have access to review your business profile and create an offer that’s right for you. Let Opportunity knock on your door today.

Apply Now

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