Business Line of Credit

Always have working capital at your fingertips!

Interested in Line of Credit?

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  • Amount

Loan Amounts

$10,000 – $5,000,000

Terms

Revolving Credit

Rates

5.25% – 29.99%

Speed

as little as 24 hours

What is a Line of Credit?

A Line of Credit is a flexible financing program that is meant for a business to use on an as needed basis. This means that a business will have access to a specific amount of money and has the freedom to use the money when they need to. The flexibility of a Line of Credit also enables a business owner to control the interest and fees that they pay on the capital drawn from their Line of Credit. There are no interest charges until money is drawn from the Line of Credit.

The terms of a Line of Credit will depend mostly on 3 factors; business credit, personal credit, and cash flow. Being that a Line of Credit is not secured by specific assets like an Asset Based Loan, it’s important for a lender to see strong operating history and strong cash flow in the business. The better the credit profile and stronger the cash flow, the more attractive the rate and terms will be. Either way, once approved for a Line of Credit there is no requirement to use the money and no fees incurred, which make an attractive proposition to apply for.

What can a business line of credit be used for?

N

Bulk inventory discounts

N

Business growth and expansion

N

New sales opportunities

N

Slow paying customers

N

Short vendor terms

N

Seasonality

N

Hiring new employees

What are the benefits of a line of credit?

N

Available capital at your fingertips

N

Interest is only charged on money that is borrowed

N

No upfront or closing fees

N

When situations arise, you don’t have to look for capital

N

Hiring new employees

N

Low rates and flexible terms

What are the best industries for Line of Credit?

Line of Credit can be used for any and all industries and we always recommend that business owners have at least one. With the varying ways a line of credit can be used and flexibility in which it can be used, it should be a priority for all business owners to have a Line of Credit. Whether business is booming, opportunities arise, or business is slow, having a Line of Credit at your disposal is crucial.

Construction

Restaurant/Bars

Doctor/Medical Practices

Hotels/Lodging

Beauty Salons/Spas

Retail Stores

Auto Repairs & Sales

Landscaping Services

How does the Line of Credit process work?

The application process to apply for a Line of Credit is simple, quick, and a business can be approved within 24 hours of applying. Our Lending Advisors request basic business and credit information and always manage to the timeline that’s needed.

Prequalify

Speak with a SMB Lending Expert to prequalify for a line of credit. SMB Compass’s simple and secure online application can be completed in a matter of minutes, with no obligations and no impact on your personal credit!

Approved

Once your line of credit application is complete we will review the rates, terms, and any questions you have about your loan approval. We will only move forward when all of your questions are answered!

Closed

Once you accept your approval and provide closing documents we will review your terms again to make sure that all your questions are answered. Your loan will then be closed and funded within 24 hours!

Line of Credit Case Study

We recently provided a line of credit to a HVAC Contractor based out of Southern Connecticut. This contractor worked with both residential and commercial clients and decided to expand their business from just service contracts to add new construction as well. Service contracts are much easier when it comes to managing cash flow, their employees always had consistent work and payments flowed in on a monthly basis. Making the jump to new construction required them to lay out money for equipment, materials, and labor. In addition, these contracts were billable every 30 days and payroll was run weekly. This all resulted in capital needed before the job started an while the job was in progress. Without a Line of Credit taking on the new projects and expanding the business wouldn’t have been possible.

What Our Clients Are Saying!

Interested in learning about your financing options?
Speak with a lending expert today!

Interested in learning about your financing options? Speak with a lending expert today!