Business Line of Credit

Unsecured Revolving Business Line of Credit

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What is an unsecured revolving business line of credit?

An unsecured revolving business line of credit is a business financing option that does not require collateral to secure the unsecured revolving business line of credit. Since this is an unsecured business line of credit you wont have to put any of your assets on the line. The revolving business line of credit allows you to draw funds any time you want and replenish the available funds at anytime and you only pay interest on the time borrowed.

Compare to banks, our business line of credit is comparably better than most banks since banks typically don’t offer unsecured lines of credit let alone traditional line of credit.

For a business line of credit, one receives a maximum balance and takes money from that balance when they need it. Each month, one makes a minimum payment according to the current balance of the loan. By contrast, business loans function like a mortgage or car loan. A bank lends you a one-time amount and you make regular monthly payments until it’s paid off.

Our revolving line of credit allows you to get set aside funding for emergencies without incurring interest for funds not drawn and only pay for the time borrowed.

  • Same-day decision and next-day funding
  • Seamless Online-Activation Process
  • No Early payoff penalties – pay early only pay interest on time borrowed
  • No Maximum Draw Amount
  • True revolver – each payment replenishes available funds to take at anytime
  • Doesn’t show up on your personal credit
  • Draw as much as you want anytime you want with $5,000 draw minimum
  • No Origination or maintenance fees – Only pay for fund used with simple 1.99% draw fee
  • Prior MCA or Liens OK!
  • Less financial burden that an MCA which requires you to take the full amount and have to wait to refinance at 50% level
Business Line of Credit

How a Business Line of Credit Works

Just like a credit card, a business line of credit can be acquired in any amount as long as it meets the pre-determined credit limit, which one accrues interest on the amount they had withdrawn.

This is what differentiates a business line of credit from a business credit card. As a borrower, one receives the cash to cover costs that couldn’t otherwise be purchased with a credit card.

For a business line of credit, one receives a maximum balance and takes money from that balance when they need it. Each month, one makes a minimum payment according to the current balance of the loan. By contrast, business loans function like a mortgage or car loan. A bank lends you a one-time amount and you make regular monthly payments until it’s paid off.

Whether a small business is just getting started or has been in operation for a while, cash in hand is a critical factor that determines business success. Many small business owners require a steady flow of income for growth and expansion. Some owners turn to cash savings, seek investors or go for a business line of credit.

Entering into a business line of credit for the first time can be time-consuming. However, once the business line of credit is functional, the business starts to develop and earn its own credit profile. Small businesses have to build a credit history to get future credit accounts and loans. Using a line of credit enables one to build a positive business credit history as they use the line and make the payments on time.

Every business is unique and has their own unique situations. However, as business owners take up debt, they should ensure the decision they make to obtain a line of credit is done carefully.

Quick and simple

Yes! Our business line of credit is actually not only fair but quick and simple to get approved without having to compile all the financials just to get an approval. You don’t need over 700 credit either to get approved! Even if you have other daily, weekly debits (MCA’s) you can still qualify for this true revolving line of credit without paying those off.

This is what differentiates a business line of credit from a business credit card. As a borrower, one receives the cash to cover costs that couldn’t otherwise be purchased with a credit card.

Payback as quick as you want

Payback as quick as you want and only pay interest on time borrowed. Draw available funds or pay it back between 6-18 months with no penalty. All we need is one-page verification for to get started and 6 months banks statements to get approvals offers. It’s fast and easy to get the line set up!

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Business Line of Credit Pros

Business lines of credit are popular because they can bring valuable advantages to your business. They include:

1. They Balance Cash Flow

Designed to provide working capital, business lines of credit are the ideal tool for balancing the cash flow. They let businesses pay bills and expenses on time, enabling one to make use of automatic payment discounts. Seasonal businesses can get the most out of a line of credit as the cash influx from peak times isn't quite enough to make it through the off-peak months. Businesses can access the line of credit and pay it down when the clients return.

2. Pay for What You Need

A business loan gives one a lump sum according to what they think is required for the business. If one guesses lower, then one has no choice but to seek extra capital elsewhere. The quick credit, in this case, tends to be expensive and time-consuming to obtai

If one demands a higher amount, they will have to live with paying the higher interest and initiation fees on the money they didn't have to borrow. The entire investment becomes less efficient and can become really dangerous if the loan has early payoff fees.

As for a line of credit, one only pays interest based on the amount they use. Depending on the agreement with your lender, one may be able to pay off the balance at any time without a prepayment penalty.

3. Improve Business Adaptability

Sometimes a business can have a limited window to seize opportunities. One might have an opportunity to advertise, participate in an event or a supplier's cost has been significantly reduced. Business owners can take advantage of that limited offer when they don't have the cash to do it. With a business line of credit loan, one won't risk missing out on a great opportunity to save money in the long-run.

4. Build Business Credit

Business credit lines help build a business credit history. To get the best terms by avoiding higher interest rates on personal loans, one needs long personal credit history. If businesses would like to boost or maintain their credit score, receiving a business line of credit and paying it off quickly is a great way to achieve this.

Business Line of Credit Cons

Just like any capital source out there, a business line of credit also has its downsides. Without assessing potential issues that could arise after receiving the lines of credit, sometimes one isn't properly prepared to entirely make use of this financing option. Here are the cons you would expect with a business line of credit:

1. Extra Charges and Fees

Even though they are not as expensive as a business credit, business lines of credit have high-interest rates. Fees and charges quickly add up as most of them carry hidden initiation, processing and maintenance fees.

It is important to conduct proper research and compare online lenders' annual fees and other additional costs to find a suitable line of credit for your business or figure out if another financing product is more affordable.

2. Time-Consuming Application

Apply for a legitimate business line of credit demands one to provide:

  • Business bank statements
  • Personal bank statements
  • Personal tax returns
  • Business tax returns
  • Recent profit and loss (P&L) statements
  • Business documents (such as articles of incorporation)
  • Resumes for leadership

It is a long and complicated process that demands one to apply for a secured instalment loan or credit card.

3. Can Lead To Temptation

Even though a business line of credit helps you grab opportunities, some opportunities turn out to disappoint. If your business borrows too much, it can be a recipe for disaster.

Having already acquired significant debt, or not being significantly confident that it’ll be able to repay the balance, it might not be the right time for one to take on a line of credit. It is easy to borrow excessively against your business line of credit and spend the profits on investment payments.

4. Low Limits

Sometimes business lines of credit have limits higher than a credit card but lower than an instalment loan. If the line has a lower limit than your needs, it's not a worthy solution. It just sets one up to accumulate debt without reaching business goals.