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