Why a Business Line of Credit Might Be Exactly What Your Business Needs

What is a Business Line of Credit?

Also known as revolving credit, a business line of credit allows business owners to maintain constant access to capital. It functions much like a business credit card; you get pre-approved for a certain amount of credit and can use whatever funds you need up to that limit. The benefit of a business line of credit is that unlike credit cards that have very high interest rates, it boasts interest rates as low as 1.75%.  

A business line of credit keeps your business running smoothly without any gaps in cash flow. It’s perfect for business owners who want the peace of mind of knowing they have access to available funds at all times.

Here are 5 reasons it may be exactly what your business needs:

You’re in Control and You Only Pay for What You Use

With a business line of credit, you’re in control of how and when you utilize your funds. As an added bonus, you only pay interest on the amount that you use.

It Helps You Be Prepared for Unforeseen Expenses

Let’s face it, the best-laid plans often go awry. When unexpected costs or emergencies arise, you can quickly draw on your line of credit to fix broken equipment or cover a lull in sales.

You’ll Have Access to Fast Cash Whenever You Need It

A business line of credit ensures that your business always has capital on hand. Whether you’re struggling to make payroll, have bills that are piling up, want to make a short-term investment, or need to hire additional staff for the holidays, a business line of credit is like a constant safety net for your company.

It’s Flexible

Unlike a loan that has to be used for one purpose, a business line of credit can be used for a variety of business expenses. You can draw down any amount, at any time. And there are no prepayment penalties.

The Application Is Quick and Easy

The application will not affect your credit score and is quick and seamless. All you need to complete the process are the following documents:

• the completed application
• your driver’s license
• a copy of the past 6 months of business bank statements.

A business line of credit from SBG Funding can help you manage your cash flow, grow your business, overcome a seasonal dip in sales, and even seize a lucrative business opportunity. If you’re interested in maintaining ongoing access to fast cash for whenever you need it, click here for more information about our business lines of credit.