Why You Should Get a Business Line of Credit Before It’s Too Late
1. Get Approved While You’re Financially Strong
Lenders prefer businesses with steady revenue, good credit, and solid financials. If your business faces a downturn, securing credit becomes much harder. Lock in your LOC while your financials are in good shape.
2. Prepare for Emergencies
Unexpected expenses—whether due to economic downturns, supply chain issues, or equipment failures—can arise anytime. A LOC ensures you have the funds to handle these surprises without disrupting operations.
3. Seize Growth Opportunities
A LOC provides quick access to capital, allowing you to jump on time-sensitive opportunities like bulk inventory discounts, marketing campaigns, or expansion plans without waiting for loan approval.
4. Improve Cash Flow Management
Businesses often experience cash flow gaps due to slow-paying customers or seasonal fluctuations. A LOC can help you cover payroll, rent, or supplier costs while waiting for incoming revenue.
5. Take Advantage of Favorable Interest Rates
Interest rates fluctuate based on market conditions. Securing a LOC now can help you lock in a lower rate before potential increases, saving you money over time.
6. Build Business Credit
A well-managed LOC can strengthen your business credit profile, making it easier to qualify for larger loans or better financing terms in the future.
7. Avoid Last-Minute Rejections
If you wait until you desperately need funds, you may face delays or rejections due to weakened financials. Being proactive ensures you have access to capital when you need it most.
Fast approval by meeting the minimum guidelines listed below:
- Minimum Equifax credit score of 551
- Minimum 1 month time in business (same ownership)
- Minimum monthly sales of $17,000
- Loan amounts up to $500,000 for single entities
- Loan amounts up to $750,000 for multiple entities
- Fixed terms from 12 to 36 Months
- We can pay off 1 competitor (MCA, short-term loan)