Revolving Business Line of Credit

What is A Revolving Business Line of Credit?

A revolving business line of credit is a form of business financing that gives borrowers access to funds they can withdraw anytime, as needed. It’s a flexible form of business financing that allows you to borrow as little or as much as you need and repay only what you borrowed (with interest).

Business lines of credit give borrowers the option to withdraw any amount, as long as the sum withdrawn does not exceed the agreed maximum amount that can be withdrawn. It works in a similar way to credit cards, just that you pay fee for any amount you withdraw (since you’re borrowing it upfront). Business lines of credit offer more flexibility than conventional loans that require you to pay interest on the total loan amount.

The Basis of a Business Line of Credit: How it Works

A business line of credit can be seen as a form of credit card that consists of a certain amount of money which business owners can borrow as needed, pay back with interest, and borrow again. Unlike a regular business loan, a revolving business line of credit allows you to pay interest only on what is withdrawn from the total sum available in the line of credit.

A business line of credit is one of the most flexible ways to finance your business. If you’re not obliged to spending any funds, you don’t have to tap into the line of credit, and you won’t have to pay interest, even though the total sum is still available in the credit line.

Globelend Capital offers a business line of credit to small businesses in amounts starting from $10,000 and up to $250,000, with very low interests  rates fort a 1- to 2-year loan term. This is perfect for businesses that requires an injection of funds at intervals, as it’ll help them save some extra costs.

Who Qualifies for a Revolving Business Line of Credit?

A business line of credit is not difficult to quality for. However, you must meet certain criteria or requirements before your line of credit can be approved. To get a line of credit approval, your business must have been in operation for at least 6 months and generate monthly revenue of $25,000 and above.

To hasten the approval process, you also need a good credit score. A credit score of 620 is a perfect benchmark.

If you meet all the above requirements and are interested in obtaining a line of credit for your business, fill out the simple application form you  can get by clicking APPLY NOW.

Why a Revolving Business Line of Credit?

A business line of credit is perfect for businesses with ongoing expenses such as monthly bills. It makes funds readily available for businesses anytime they need them. Here are few of the numerous reasons why small businesses should consider taking out a line of credit:

  1. Quick funding:

    A business line of credit offers quick fund approvals. In less than 1 or 2 days, your line of credit can approved and you’ll gain access to funds.

  2. Simple and easy:

    Unlike most other forms of business loan, a line of credit is simple in how it works. Getting approved doesn’t require as much serious paperwork as other forms of business financing.

  3. Great repayment terms:

    A revolving business line of credit offers a level of flexibility that is not available from other types of business loan. With a business line of credit, you can withdraw funds anytime you need to, and you’ll only pay interest on the withdrawn sum, not on the entire amount in the credit line.

  4. Versatile:

    It can serve as source of funding for a variety of business purposes. However, it is better if a business line of credit serves as an alternative funding option because of how it is designed. Money drawn from the credit line can be used to purchase equipment, inventories, etc.

Cons of Business Line of Credit

There are few shortcomings associated with a business line of credit. These include:

  1. Collateral:

    No hard collateral needed. Loans are often secured with UCC lien against the business. 

  2. Limited funding:

    There is a limit to the amount you can obtain through a business line of credit. If you require a huge sum of money to finance your business, a line of credit might not be the best financing option.

Documents Required to Obtain a Business Line of Credit

  • Driver’s license
  • Business bank statements
  • Voided business check
  • Certificate of business ownership

Applying for a Revolving Business Line of Credit with Globelend Capital

It’s a good idea to compare different line of credit options before selecting the perfect one for your business. However, every lenders we partner with at Globelend Capital is great to work with. Our agents can advise you on the perfect business line of credit option for your business.

Globelend Capital is dedicated to helping small businesses secure the funds they need to grow. We’ve helped thousands of business owners acquire a line of credit, and we’re confident that we can help you secure one that will help you take your business to the next level.

If you’re seeking a quick and easy-to-approve line of credit for your business, contact Globelend Capital. APPLY NOW!

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