Business Line Of Credit

Get Approved For A Business Line Of Credit!

At JG Business Capital, we have over a 90% approval rate for getting businesses a business line of credit. When you get a business line through JB Business Capital, you will be able to draw out more cash as you need it. You will also be able to speak with a knowledgeable business financing advisor who can answer all of your questions, explain all of the various options available, and help you with the process from beginning to end. Don’t wait to get the flexible financing you need in order for your business to be able to grow and expand.

 

What Are The Qualifications For A Business Line Of Credit?

When applying for a business line of credit on your own, getting qualified can take a bit of time and some effort on your part. But when you go through JG Business Capital, using our marketplace makes it a lot less time-consuming and difficult. The first thing to understand is that different lenders will have various requirements to get qualified. So whether or not your business will qualify for a business line of credit will vary depending on which lenders you apply with. The good thing about applying through a marketplace like ours is that you can learn about the different options available through various lenders while submitting only one application.

If you go through a bank or a credit union, they will typically have more demanding qualifications that can be somewhat aggressive. And if your business doesn’t have a spotless financial record, getting qualified through a bank or credit union can be fairly difficult. But you can always get qualified through an online lender based on your annual sales. Going through an online marketplace like JG Business Capital is less demanding because we tend to focus on your business and its opportunities over its credit history.

We Offer Some Of The Best Rates For Business Lines Of Credit!

  • Line Amount – $10K – $5 Million
  • Flexible Terms – Between 6 months – 10 years
  • Time To Fund – 1 day – 3 days

What Is A Business Line Of Credit?

A business line of credit is a flexible funding option that gives you access to cash whenever you need it. With this option, you’re only paying interest on the portion that you use while only drawing out the cash that your business needs from your credit limit. When you use revolving lines of credit like this, more cash becomes available again as you pay down the portion that you use. A business line of credit is the perfect tool to have access to when you’re growing your business and need access to funds on short notice. You can also use a business line of credit as a rainy day fund or to help maintain the business during those seasonal slumps. There really are no restrictions on what you can use the business line of credit for. You can use it to cover any challenges, costs, or opportunities that may come your way.

How Does A Business Line Of Credit Work?

In a sense, business lines of credit work similar to how credit cards work. They just have a different structure that’s better suited for small business owners. They’re also better for tax purposes because you can write off interest on a credit line, but not for a personal credit card. After qualifying for a business line of credit, you’ll receive a total credit limit. You can draw as much or as little as you need from that total limit in any number of installments.

You can continue to access additional cash from the business line of credit as you pay it down. And instead of paying interest on the full credit limit, you’ll only pay interest on the portion you use. Depending on your lender, you may have a non-utilization fee where you have to pay for the line if you don’t use it. Before signing an agreement, be sure to ask for clear information about any fees. Avoid any agreements without clear, transparent information.

What Is The Difference Between A Line Of Credit And A Small Business Loan?

Both provide your business with the cash you need to grow, but the way these products are structured is quite different. When you apply for a small business loan, you receive the full amount you qualify for in one lump sum deposit. A line of credit, on the other hand, offers more flexibility than most loans and cash advances. Instead, you have the option to draw cash out in increments and continue drawing more until you reach your credit limit. Typically, lines of credit have lower interest rates and closing costs, which can make them more cost-effective as well. Small business loans are the better choice when you’re taking on a huge project with defined expenses. Lines of credit, however, can be better as a flexible backup to cover unexpected costs or as a backup for your bank account.

Secured Vs. Unsecured Business Line of Credit

A business line of credit can either be secured or unsecured. The difference depends on whether or not your lender requires you to put up any form of collateral. Secured lines of credit are backed by collateral while unsecured credit lines are not. To lower their risk, some lenders require that borrowers put up collateral such as real estate, receivables, inventory, equipment, or their home.

However, putting up your home as collateral puts both your personal and business lives at risk. For this reason, it’s usually not a wise choice. Backing your financing with collateral simply gives the lender confidence in the event you default. Years ago, it was difficult for a small business owner to qualify for an unsecured line of credit, especially through traditional lenders. Through the new world of online lending, small business owners can qualify for multiple unsecured lines of credit options and compare rates. While they don’t require collateral, unsecured options may have slightly higher rates due to the lender’s increased risk. By putting up collateral and opting for a secured line of credit, you may qualify for a higher approval. That being said, you can usually still qualify for a competitive unsecured line of credit based only on your annual sales even with personal credit challenges.

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