How To Find The Best Business Line Of Credit
A business line of credit can give you more flexibility. You will be able to borrow money and pay interest on the money that you borrow. You can repay and draw the funds as often as you wish as long as you stay within the credit limit.
Do you need to buy inventory? Do you need help managing your cash flow? Do you have a surprise expense? If the answer to any of those questions is yes, then you can get a business line of credit.
A business line of credit is typically an unsecured debt. This means that you can get the line of credit without using any collateral. It is a lot like having a business credit card. A line of credit is not the same as a business loan. If you get a business loan, then you will get money that you can repay over the course of a fixed period. You may want to take out a business loan if need a longer-term investment.
Fast Cash on Hand
Many business owners turn to business lines of credit to help them get the fast cash on hand that they need. Additionally, they use them to fill the gaps in income that come up occasionally. As long as a business is not depending on a business line of credit as the main source of income for the long run, then a business line of credit can be a great choice for many different types of businesses. In fact, a business line of credit provides the working capital an enterprise depends on to meet expenses while seizing opportunities for expansion and growth. Whether it’s adding in new inventory or paying for marketing and advertising, this loan type can help you take your enterprise to the next level of success.
Lines of Credit up to $100,000
Ondeck, Kabbage, Streetshares, and Bluevine all offer credit lines up to $100,000. If you just started your business, then you should look into Bluevine. Streetshares is a great option if you are looking for a loan that will give you the lowest interest rate. Ondeck or Kabbage will allow you to get funding the fastest.
You can get a loan from Bluevine after being in business for six months. You will be able to make payments on the loan every week over the course of six months. You will be able to get approved for a loan within 24 hours. You need to have a minimum credit score of at least 600. Your business will also have to make at least $60,000 in revenue.
StreetShares offers you a low APR range that ranges from nine to 40 percent. Your minimum revenue will have to be at least $25,000. You will need to have a minimum credit score of 600. Even though the maximum credit line is $100,000, you will only be able to get approved for an amount that is equal to 20 percent of your annual revenue.
Kabbage is a good option if you want to get approved fast. It is also a good option if you have bad credit. You must be in business for at least one year and make at least $50,000 per year before you can qualify for a loan from Kabbage.
Ondeck also allows you to get approved fast for a loan, and it has lower interest rates than Kabbage. However, you must have a minimum credit score of 600 and make at least $75,000 per year.
Line of Credit up to $300,000
You can get a line of credit up to $300,000 from Lending Club. You must make at least $75,000 and have a minimum credit score of 600. The interest rate ranges from eight to 35 percent. You will also be charged a one to two percent draw fee every time that you take out money.
Choosing the Best Interest Rates & Terms
When deciding which business line of credit loans to choose, it helps to figure out which one offers the most competitive interest rates. Some loan companies provide more competitive interest rates than others and some have easier loan approval terms and for this reason, it helps to compare multiple lenders in order to make the best possible determinations. Many new businesses may be looking for a one-size-fits-all solution to a business line of credit loan. However, there isn’t a cookie cutter option that will work. Instead, it is necessary to apply through multiple lenders to find the one that will provide the best possible repayment terms to suit the needs of your business.
The right interest rates and repayment terms vary for each type of business. This is due to the fact that interest rates are typically determined based on the applicant’s credit score. Other factors are examined when the lender makes an offer including the annual revenue of the company as well as how long it has been in business. In addition, lenders like to know the purpose of the loan and what the funds will be used for. They will examine your financial goals and plans for repayment in some instances to help them make the best possible loan decision.
At Business Line of Credit Hub, you can apply through our simple online portal and apply to multiple lenders all at the same time. Once you have gotten approvals, you can compare the loan terms to see which one is the best. There is no need for concern about reputable lenders since we only partner with highly rated lenders that offer quality customer service throughout the entire loan process. No matter what type of business line of credit you need, we can assist you with finding the most optimal loan that will help you meet your business goals.
Work With Online Lenders
Businesses looking for the best business line of credit can benefit from working with online lenders. Other names for online lenders are alternative lenders or platform lenders. If you are searching for the best possible lenders, working with these types of loan providers increases your chances of getting approved for a loan. Alternative lenders tend to have more leeway in making lending decisions when compared to banks and other financial institutions. For this reason, it is beneficial to consider applying for a business line of credit through an online portal instead of going to a standard bank where the approval odds are slimmer.
Another benefit of working with online lenders to find the best business line of credit is that the transaction is completed much faster than through a traditional bank. With online lenders, you can get an approval within minutes in many cases and in other cases, you can get an approval within 24 hours. In addition, they can move the funds along much faster and can get the money into your bank account in days instead of the weeks it can sometimes take through a traditional bank. Because of these benefits, many business owners apply through online lenders to find the best business line of credit for their needs.
Is a Business Line of Credit Right For Your Business?
Although you may be searching for the best business line of credit, it still helps to ask whether or not a business line of credit is actually the right fit for you. By exploring the benefits and advantages, you will be able to make the right choice for your enterprise expansion goals.
Easier approval than term loans
A business line of credit typically has an easier approval rate than term loans. This means that they can be approved even with the business not meeting the typical criteria. Whether you are a new startup or you have been in business for a while but your revenue is around $50,000 to $100,000, you can still find a business line of credit that is just right for your needs.
Lower interest rates
Although there is a fee associated with a business line of credit, typically the interest rates actually tend to be lower than with standard loans. This is one of the reasons that these types of loans are much more appealing than traditional installment loans.
Pay when you want to
In a sense, you can pay for your business line of credit when you need to. There are no set installment loan amounts that need to be paid on time each month. As long as the business does not exceed its credit limit, you can continue to borrow funds as long as they are repaid before you request that your line of credit be renewed.
Faster approval rates
One of the benefits of choosing a business line of credit is that the approval rates tend to be much faster. You can find out if you are approved for one within 24 to 48 hours. This is much faster than the days and even weeks of waiting when trying to secure a traditional loan.
With a variety of benefits, it's clear that a business line of credit is a great option for most businesses in need of short-term funding. It helps to consider the fact that a business line of credit is not a great option for businesses that need to make large purchases or where real estate investing is a part of the financial plan. Considering the ways in which you will use the loan will help you to make the best decision about which type of loan is right for your short term and long term financial goals.
Examine your cash flow ratio
Before making the final decision to obtain a business line of credit, it helps to examine your cash flow ratio. This is the amount of your income divided by expenses. This number will give you a good idea as to what your ability is to repay the loan. It also helps to consider your ROI by subtracting the loan plus the interest rates and fees from your projected profit after using the loan to spur business growth. Once you come up with these figures, you will have a much more accurate picture of what it takes to really make a business line of credit work for your business needs.
How Can Business Line of Credit Hub Help?
Business Line of Credit Hub is the premier company providing outstanding quality services for business owners nationwide. We connect the nation’s best lenders with the entrepreneurs who need their assistance. We offer a wide range of articles on the various types of loans that are available for small to medium sized businesses. Our online portal provides business owners with the chance to apply directly so that they can access lending opportunities to obtain the funding they need. When you choose Business Line of Credit Hub, you can have access to a loan of up to $150,000. With access to the best funding solutions, we have made it possible for business across a variety of industries to meet their financial goals.
Flexible Lending Terms
At Business Line of Credit Hub, we provide lenders with flexible lending terms to meet even the most unique situations. If you have an unusual type of business, haven’t been in business for very long, or don’t have a great credit score, don’t worry, we can help. We will provide access to lenders who offer business lines of credit to companies of all types. Our lenders will fund loan requests from businesses that don’t have perfect credit as well as to businesses on the newer end of the spectrum. Browse our website for additional information about our different types of loans as well as funding options for your business. Then take the time to fill out the short application form and choose the best loan option for your needs.
Michelle worked at a teller at her local bank while she was earning her degree in economics. Then, after completing an MBA, she came back to the bank as a loan officer. As a result, Michelle is uniquely suited to providing advice to small businesses when it comes to selecting the best loan and credit products.