Lines of Credit
What is Lines of Credit?
A line of credit (LOC) is an account that allows you to borrow funds as needed, up to a predetermined credit limit. You can access the money by writing checks, using a bank card, or making cash withdrawals.
Unsecured Lines of Credit
The key advantage of an unsecured line of credit lies in its swift approval process for qualifying applicants. This financing option entails less paperwork than other loan alternatives, saving valuable time. As long as you maintain a good credit score, an unsecured line of credit provides funding without the need for assets or collateral. However, lenders typically consider this option for well-established companies with excellent debtor reputations.
Secured Lines of Credit
Opt for a secured line of credit for a higher maximum credit limit and lower interest rates. Lenders require businesses to have assets, with a lien in place for the loan’s amount and duration, providing a means for the lender to recoup funds in case of non-payment. For medium and small businesses, a secured line of credit is often the preferred choice for obtaining rapid funding. Even successful businesses encounter financing needs, and by initiating the process early, we identify the right secured line of credit that aligns with your business requirements. This proactive approach ensures guaranteed access to funds when needed, even if you’ve faced denials in the past.
Working Capital
Business dynamics evolve, and having a revolving line of credit becomes crucial during slower periods. Working Capital Lines are designed to provide financial relief for daily business operations such as accounts payable, wages, and invoicing. Unlike loans for long-term investments, a working capital loan offers flexibility for your daily operational needs. This line of credit maintains a maximum loan amount that your business can borrow as needed. The major advantage lies in charging interest only on borrowed funds, not the entire maximum loan amount. With more repayment flexibility, as funds come in, businesses benefit from lower interest rates and minimal finance charges. Be prepared for any business scenario with our accessible Working Capital Lines.