Business Line of Credit
Business lines of credit are known as "revolving," and they are similar to credit cards. This financial vehicle is excellent for small businesses because it can remain open for an extended period of time. After your lender approves you for business lines of credit, you will receive a credit limit, and you can borrow as much money as you need to borrow up until you reach that limit.
Qualifying for a Business Lines of Credit
You may be able to obtain business lines of credit between $10,000 and $1 million, but you will need to qualify for it. Different lenders have different stipulations such as time in business, annual revenue and credit score.
You will not receive your entire credit limit after you have been approved. Instead, you will withdraw smaller amounts of money and repay them according to your agreement with your lender. An important point to remember is that you will only pay interest on the amount of money that you borrow at any given time. After you repay what you borrowed, you can borrow more money up until you reach the credit limit that was originally set by your lender.
Your terms may be between six months and five years, but this will depend on your creditworthiness.
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