A business line-of-credit is a type of flexible pre-approved commercial financing in which a maximum loan balance is set by a bank or lender in which the borrower can draw on the funds whenever they wish. A line-of-credit can range in sizes from $5,000 for very small businesses, to well over $5,000,000 for mid-size companies. Repayments for lines-of-credit are made in various fashions, including monthly, weekly and even daily by some lenders.
While each lender has their own criteria for their lines-of-credit, a large number of lenders like to secure their lines of credit with assets such as accounts receivable or the equity in their hard assets. A lender will extend a line-of-credit to a business based of a percentage of the A/R or net value of the hard asset. Other banks and commercial lenders will provide lines-of-credit on an unsecured basis provided the company is creditworthy, and the financials support the facility.
While there are many advantages to a line-of-credit for a business, the most advantageous may be the fact that a LOC allows a company to borrow as much money as they need without having to go through an approval process with a lender. The financing is pre-approved and is readily available to draw upon until they reach the maximum allowed.
What makes a line of credit most advantageous is the fact that interest is only paid on the amount that is drawn from the line of credit, and not from the overall size of approved funding related to the financing facility.
While each lender has their own criteria for their lines-of-credit, a large number of lenders like to secure their lines of credit with assets such as accounts receivable or the equity in their hard assets. A lender will extend a line-of-credit to a business based of a percentage of the A/R or net value of the hard asset. Other banks and commercial lenders will provide lines-of-credit on an unsecured basis provided the company is creditworthy, and the financials support the facility.
While there are many advantages to a line-of-credit for a business, the most advantageous may be the fact that a LOC allows a company to borrow as much money as they need without having to go through an approval process with a lender. The financing is pre-approved and is readily available to draw upon until they reach the maximum allowed.
What makes a line of credit most advantageous is the fact that interest is only paid on the amount that is drawn from the line of credit, and not from the overall size of approved funding related to the financing facility.
We Partner with only the BEST Niche Lenders in the United States:
Announcing: The Ultimate Revolving Line of Credit
This Type of Loan addresses the #1 concern of business owners everywhere who require the flexibility to access capital while keeping their cash flow stable.
Our Primary Lending Partner accomplishes this by providing merchants:
Announcing: The Ultimate Revolving Line of Credit
This Type of Loan addresses the #1 concern of business owners everywhere who require the flexibility to access capital while keeping their cash flow stable.
Our Primary Lending Partner accomplishes this by providing merchants:
- The loan amount from $1,000,000
- A revolving period of up to 1 year (52 weeks)
- No minimum finance charges required
- Minimum Equifax credit score of 605+
- Minimum FICO is 660+
- Minimum 24 months time in business (same ownership)
- Minimum monthly sales of $50,000
Restricted Industries:
- Gambling
- Adult Entertainment
- Political campaigns
- Legal & illegal substances
- Firearms & paraphernalia
- Financial institutions & lenders
- Donation-based nonprofits
- Car Dealerships
Here are the types of businesses our partner lenders accept:
