How to Find a Business Line of Credit Fast
Do you need an instant financing option for your business? Financing that can help your business thrive in all seasons?
Building a successful business has several challenges, most of which are caused by an imbalance in cash flow. In fact, 69% of entrepreneurs and business owners have cash flow issues, and a third of them wait for late payments. While no business is immune to challenges, the top business owners understand that an instant business line of credit can help solve most of these challenges.
If your company needs flexible, fast and convenient financing, then a business line of credit may be your best shot.
Read on to understand how you can secure a business line of credit. But fast, what is a business of credit?
What Does an Instant Business Line of Credit Really Means?
It is important to know what exactly a fast business line of credit is and how it works before determining the eligibility requirements.
So what is a fast business line credit and how does it work?
A business line of credit is a financing source that allows you to draw any amount from your limit and use it for any business needs at any time. Then you only repay the interest of what you spent. Most of these financing are revolving, so you can draw more money after paying off the debt without repeating the application process.
A fast business line of credit enables you to get instant funds at a moment’s notice. “Instant” in the context that you can receive the cash in a few hours compared to traditional lines of credit that take several weeks or up to months to approve. Why a fast business line of credit?
Instant approvals mean you’ll always stay ahead of your competitors while keeping your business financially balanced.
For instance, you may acquire a $150,000 business line of credit to expand the business with $100,000. The account will remain with $50,000 that you can use for other emergence business expenses while you only pay interest on the amount used.
Like other financing products, a fast business line of credit has requirements.
Requirements for an Instant Business Line of Credit
So how can you get this fast business line of credit?
The eligibility requirements for business lines of credit are different based on the amount you need and the kind of your business. However, they’re almost similar to a standard business line of credit requirements.
Since most banks rarely offer business lines of credit, your FICO score isn’t a significant factor in determining your qualification. Instead, financiers consider other factors alongside the credit score. Lenders check all options available for you to get finances, including all your credit profiles.
Alternative financiers are the major source of fast business lines of credit, and they mainly focus on your business revenue when evaluating your application. Does your business show potential to grow?
The revenue generated paints a clear picture of the progress of your business and whether it’s capable of making the payments. So what revenue should you expect?
Most financiers will require you to make at least a $100K business revenue to qualify comfortably. The higher, the better
Although a weaker factor, most lenders would like to know how long you can sustain your business. Why is time in business vital for your qualification? Because it shows proof that you can manage and sustain your business for a long time. Leading financiers will accept as low as three months because they’re confident in your business growth.
Some lenders may request your month-to-date, although it’s less common.
Also, you may be asked to provide a personal guarantee based on the lender you work with. This is a standardized agreement you accept to be liable for the funds you draw and that you’ll personally pay back in case your business doesn’t pay.
And if you choose a secured business line of credit as your financing option, you may have to put down your business assets as collateral. Note that it’s not advisable to tie up personal assets and business expenses as this may bring confusion even in balancing cash flow. But you can still seek an unsecured business line of credit.
What is The Business Line of Credit Rates?
It’s always important to consider business lines of credit rates when weighing your available options. However, there are no standard interest rates on instant business lines of credit. Therefore, the best way to find out the rates is to apply first.
Knowing the averages gives you better insights into considering your options. But financiers evaluate businesses individually based on your financial history, credit score, industry, revenue, and other few factors.
Additionally, lenders may adjust rates due to the current economic status. For instance, in cases where businesses are not performing well during economic turbulences due to government restrictions.
And here’s a hack for lower interest rates.
To get lower interest rates, aim for higher FICO scores. Also, securing an instant credit line will help lower the rates.
Apply for an Instant Line of Credit and Get Cash for Your Business Today
Do you want a two-minute application process and, potentially 24 hours of approval?
Work with a lender who considers your business’s vision and potential growth. You can secure a fast, flexible and straightforward business line of credit to help your business acquire emerging business opportunities as fast as possible and stay ahead of your competitors.