Small Business Line of Credit
Access cash – when you need it with a line of credit
What is a business line of credit and how does it work?
A business line of credit is a type of revolving loan that gives you access to a certain amount of money that you can use as needed to cover short-term expenses for your company. The ideal financing choice is a business line of credit when you require additional working capital to pay regular business expenses or close cash flow gaps. You can choose to only withdraw what you need, when you need it, and pay for what you actually use if you have ongoing access to funds. As a result, you’ll be ready for whatever chances and challenges lie ahead.
Benefits of an Business Capital Resource Business
Line of Credit
Revolving lines of credit from $6K-$100K
12-month repayment term, resets after each withdrawal
Automatic weekly payments
Instant Funding: Every time you make a withdrawal, you’ll receive money in your account instantly—24 hours a day, even on weekends and holidays.*
consolidated payment for all withdrawals: Make a single weekly payment for all withdrawals to save the hassle of having to adhere to various payment dates.
Access more funds automatically: When we check your credit profile and decide whether you qualify, you will automatically see your credit limit increase. We regularly engage in this, thus the chance arises frequently.
Building business credit: is possible by making prompt payments, which we will submit to the credit bureau.
Only pay for what you borrow: Withdraw what you require when you require it, and only pay for what you borrow. additionally pay interest just on the borrowed money.
Revolving credit: If you make timely payments and only apply once, the available funds will be replenished.
No prepayment fees: Increase your flexibility by paying off your credit line whenever you want without incurring any fees.
Transparent pricing: With the help of our tools, you can acquire a thorough breakdown of the cost of your line of credit, along with all the crucial details you need to assess potential loan offers.
Minimum eligibility requirements for an Business Capital Resource Term Loan or Line of Credit
Time In Business: 1 Year Minimum Requirements
Personal FICO Score: 600 Minimum Requirements
Business Annual Gross Revenue: $100K Minimum Requirements
Business Check Account: Yes Minimum Requirements
We lend to over 700 industries, but there are some industries we cannot serve: see list of restricted industries. In addition, Business Capital Resource does not lend to businesses in Nevada, North Dakota, or South Dakota.
Applying for a line of credit at Business Capital Resource is quick and simple
Step 1. Complete the application
All of your information is kept safe and we only ask for basic information about your business and 3 months of your most recent bank statements.
Step 2. Get a decision
Your dedicated loan advisor will review small business loan options with you to find the one that best suits your needs.
Step 3. Receive your funds
Once you complete the online checkout, you can receive your funds as soon as same day.*
Ways to use a business line of credit
A business line of credit, as opposed to a term loan, enables you to operate your company without constantly seeking new financing. Additionally, you can lessen your stress by planning for and managing your company’s future cash flow more effectively with continued access to working capital. Your credit line may provide you with the push you need to seize chances when they present themselves.
The fact that a business line of credit is revolving is one of its key advantages. This implies that you can use the credit line as needed, settle the balance, and then utilise it once more as money becomes available. Business lines of credit can be used in a variety of ways.
Top ways to use a line of credit
Reopening your business
Bridging cash flow gaps
Covering payroll
Hiring more employees
FAQs: Business Capital Resource Line of Credit
Instant Funding**: What is it?
The quickest and simplest option for small business owners to obtain operating cash is through Instant Funding. One of the few lenders, Business Capital Resource, provides business lines of credit with immediate capital availability. When you need to use your credit line, you may click “draw funds” and instantly see the money in your account, even when banks are closed, allowing you to resume your work as soon as possible. The best thing is that Instant Funding is offered at no additional charge.**
How does the repayment on my line of credit work?
Our line of credit is revolving and has no draw fees, in contrast to other online lenders (just a monthly maintenance fee). Money is replenished when you repay it, and extra withdrawals are combined into one loan with a single, simple weekly payment.
Can my credit limit be increased?
There are times when having access to more money would be really helpful. Depending on your cash flow, net income, and repayment history, you might be qualified for an increase in your credit limit. To discover more, all you have to do is give your specialised loan counsellor a call.
What will the price be?
Interest rates begin at a rate of 29.9% APR (APR). Your personal and business credit scores, the length of time your firm has been operating, annual sales, and cash flow are just a few of the variables that will affect the total cost of your line of credit. **
What additional small company loans, besides my line of credit, am I eligible for?
You might have a project that requires more money than your business line of credit can provide. We at Business Capital Resource are aware of this, and we also provide term loans in addition to your business line of credit. To learn more about some of your alternatives, get in touch with your assigned loan counsellor. Check out this page for more small company loan options, such as those not offered by Business Capital Resource’s Term Loan and Line of Credit.
How does establishing business credit work?
We use soft pulls of personal credit reports, which don’t lower your credit score, unlike the majority of internet lenders. Additionally, we record your payments to business credit bureaus so that each time you pay on time, you contribute to the development of a positive credit rating for your company.
Additional resources on business lines of credit
Business Line of Credit vs. Business Credit Card
A revolving loan known as a line of credit offers a set amount of working capital that can be drawn upon as needed. Up to the fixed limit, the entire or a portion of the credit line may be drawn upon at any time, paid back, and then utilised once more. Only the amount of credit used is subject to interest payments. When business owners require immediate access to cash, a business credit card is a very popular and adaptable financing and purchasing tool.
While business credit cards and company lines of credit are both often utilised by small business owners, there are specific purchases or payments that a business credit card cannot be used for. For instance, you might not be able to pay for your property lease, wages, or vendor invoices, but you can borrow money from your company line of credit instead. Additionally, a Business Capital Resource business line of credit has a credit limit of between $6,000 and $100,000, whereas some company credit cards have smaller credit limits.
Secured vs. Unsecured Business Lines of Credit
For various business needs, there are several forms of loans. Asset-based lending is one sort of financing frequently used by small businesses. Any type of loan, or in this example, a line of credit, that employs an asset as security is an asset-based loan. The lender may seize the asset if the borrower misses a payment on the debt. Real land, machinery, stockpiles of goods, accounts receivable, and cash accounts are examples of assets. In order to support future loans, these assets may be pledged as collateral; whether or not they are utilised as collateral determines whether the loan or line of credit is “secured” or “unsecured.”
In order to secure a secured business line of credit, a company must pledge assets as security. Lenders often request short-term assets like accounts receivable or inventory since a line of credit is a short-term liability. The lender may take control of the collateral and sell the asset to cover the debt if the borrower is unable to repay the line.
A business does not have to put up assets as collateral to secure an unsecured commercial line of credit. Unsecured lines of credit frequently need the business owner to have a strong credit history, credit score, and track record of successful operations in order to be approved. Unsecured lines of credit typically offer slightly higher interest rates and smaller line amounts.
With help from the professionals in small business loans, expand your company.
**If a loan is fully repaid before the end of your payment period, you will only be able to save money on accrued interest. The interest rate on term loans using the Prepayment Benefit option will be greater, which could raise the overall cost of the loan. Without a Prepayment Benefit, you would be responsible for paying 75% of the interest that was indicated in your original loan agreement if you paid off your loan early. Only businesses with the best creditworthiness and cash flow, and often companies that have demonstrated an exceptional payment history on earlier loan products with Business Capital Resource, are eligible for the lowest rates, which have a very small pool of applicants. 62.1% APR is the typical rate for term loans. Loans originated during the half-year ending on average March 31, 2022.