It's the nature of business to be cyclical. This means your businesses cash flow will find their own high and low points throughout the seasons, and throughout the years. Will you make it from this ebb to the next flow? Would getting a cash infusion in the form of a business line of credit help you?
A small business line of credit allows a business owner to draw against a specified amount of financing on an as-needed basis. The advantage of a business credit line is that you only pay interest on the funds you actually draw, so you’re not stuck paying interest on capital you don’t have an immediate use for. If you’re a business owner taking out a line of credit, you’ll be spending that flexible cash on seasonal business expenses, payroll and other operational costs, insurance against emergencies and for sudden growth opportunities. In other words, as a cushion of cash flow. It’s there for you when you need it most.
Certain businesses, such as retail establishments, benefit more from lines of credit because of the predictable variations in cash flow. Seasonal changes in sales mean earnings fluctuate on a set schedule, and extra money is often needed to continue operations during slow times. When you’re able to anticipate these financial needs, you can rely on a line of credit to provide security.
Highlights of a Business Line of Credit
Flexible Working Capital
Draw the cash you need directly into your business checking account at any time. Only pay interest on what you draw. Pay back your balance early at any time.
Use your Line of Credit to:
Manage accounts receivable gaps
Take advantage of new opportunities
Manage unexpected expenses
Lines of Credit FAQ's
Do I qualify?
Companies in business at least 1 year
$100,000+ in gross annual revenue
A majority owner with a 600+ personal credit score
What are the rates?
Rates as low as 4.8% APR
Your line amount and rate will be based on our assessment of your business along with your business and personal credit
How do I pay it back?
Fixed weekly, or monthly payments
Automatically deducted from your business bank account, so you don’t have to worry about missing due dates
Are there any fees?
$20 monthly maintenance fee, which is waived for 6 months if you draw $5,000 or more in the first five days after opening your account
There are no fees to draw money