Capital when you need it.
up to $500,000
For people with a credit score of 700 or higher, a business line of credit is arguably the best type of financing for you. This type of loan option gives you enough capital to meet your various business needs. With this sort of loan, you have the needed funds at any time to close your existing cash flow gap.
The exciting thing about this kind of loan is that you generally are not required to use this kind of loan until when needed and guess what? You’re only charged interest when it is used. Also, as you pay the loan down payment, you also do away with the interest charged, how cool is that?
THINGS YOU SHOULD KNOW ABOUT THIS KIND OF LOAN
People who decide to go for this kind of loan have access to loan amount ranging from $1,000-500,000. Other things you should know is that
- This loan matures between 1-2 years.
- It has a monthly payment frequency
- Interest Rate is between 8% – 24%
- You can have access to funds in 1-4 weeks after application
ADVANTAGES AND DISADVANTAGES
- You only pay interest on the loan when you withdraw funds
- You can always access your LOC when you need it
- It is perfect for all type of business needs
- You may be required to present some sort of collateral
- If you have a low credit score, you may be forced to pay a higher interest rate
- Comes with a personal guarantee
Getting access to this loan is easy. With a credit score of 700, most small businesses can qualify for a business line of credit. However, you may be required to present your tenure in business together with collateral to back this loan.
The interest rate for business Line of Credit Loan is around eight to twenty-four percent. However, if you have a good credit score, you’ll enjoy an even better rate.
HOW TO QUALIFY
To qualify for this loan, you’ll be required to have an open bank account. In certain cases, you may be required to prove your financial history of two or more years. Also, lenders will consider your small business credit score.