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 the strong 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 it attractive proposition to apply for.
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.
SMB Compass's simple and secure online loan application can be completed in a matter of minutes. Quick & Easy!
After we process your application we will contact you and provide you with the best loan offer.
Once your loan is approved in as little as 24 hours. You will have capital deposited directly to your business bank account.
Line of Credits 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.
Auto Repairs & Sales
The flexibility of a Line of Credit gives business owners the ability to use the money for a wide variety of purposes.
A real example of a company that used a Line of Credit was 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.
6 Months of Business Bank Statements
If you’ve been in business at least one year, have at least $100,000 in annual revenue, and have a personal credit score of at least 600, you are eligible.
We use a number of different data points to instantly provide you with the best possible loan offer, including competitive rates and payment terms that work for you and your business.