The Benefits Associated With a Business Credit Line
If you don’t like the idea of taking out a large business loan and being in debt to your bank, you can always fund your small business with a business credit line instead. A business credit line is an unsecured line of credit that will provide you with all the funds you need for your small business, but it has some clear benefits that a standard bank loan does not. Here are just a few reasons to go with a business line of credit to fund your small business.
No Need for Collateral
While a business loan often requires some form of collateral, a business credit line does not. This alone makes it far less stressful since you are in no danger of losing your collateral should you default on your loan.
An Easier Pre-Qualification Process
This will obviously depend on where you apply for a line of credit, but most business credit lines require a simpler and less expensive pre-qualification process than a traditional loan.
You are more likely to find better rates when you apply for a business credit line, even if you may lack the credit to qualify for a substantial loan.
Far Easier to Pay Off
When you qualify for a business loan from a bank, you are given a lump sum up front that needs to be paid back in installments, usually in the form of one payment every month. These don’t change, but it’s easy to get in trouble if you miss a payment. With a business credit line, you can borrow only what you need for any given situation and pay it off. As long as you don’t go over your credit limit, you should be able to use these funds whenever you need them.
As you can see, a business line of credit can be far more useful than most bank loans. If you’re curious about this form of alternative lending or you would like to know if you qualify for a line of credit, contact Flipside Capital today.