Business Line of Credit
with the Best Loan Rates
Are you a small business owner who is trying to keep operations going smoothly with the ups and downs of sales, seasonal changes, and occasional cash flow shortages? Good news! A business line of credit will enable your business to pursue opportunities quickly, even when you don’t have funds available to invest. Here we will discuss what a business line of credit is and how it works so you can determine whether this is the right financial solution for your business.
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What is a Business Line of Credit?
A business line of credit is a flexible method of borrowing money for your business in increments that you need, up to a pre-approved limit. You make payments on a regular, predetermined schedule and you pay interest only on the portion of money that you borrow.
Who qualifies for a Business Line of Credit?
Most traditional lenders, such as banks, require businesses to have strong revenue and at least a few years of history to qualify for a line of credit. Larger lines of credit may require collateral, which can be seized by the lender if you fail to make payments. Along with having the best loan rates in the market, ZapRates simply requires 3 months of bank statements and an annual revenue of $25,000 or more – no collateral nor perfect credit score needed to qualify.
Pros of a Business Line of Credit
Being able to obtain the funds when you really need it can make or break your business at times. A business line of credit gives you a quick access to working capital. One of the benefits of getting a business line of credit is that you can avoid paying unnecessary interest rates if there is no immediate need for quick funding.
Improve Your Cash Flow
While every business should have emergency funds available for times when the market is undergoing slower production, sometimes a crisis lasts longer than the money does. You need to buy more inventory? Pay for a surprise expense? These things are not necessarily predictable at all time and a business line of credit helps you manage that risk.
Improve Your Credit
Similarly to credit cards, a business line of credit allows you to build a positive business credit history if making the payments in a careful and deliberate manner.
Pay for What You Use
When you receive a line of credit, you only pay interest on the amount that you use. Also, depending on your arrangement with the lender, you may be able to pay off the balance at any time without a prepayment penalty.
Cons of a Business Line of Credit
Credit lines typically have smaller borrowing limits than term loans, which make them ideal for unexpected charges but not for large capital investments.
Yes, there are costs. Establishing a line of credit requires up-front fees to obtain the line. Also, the business is required to pay interest on the used money withdraw from the line of credit. In addition, the business must pay interest on the money it uses from the line of credit.
Why is a Business Line of Credit with ZapRates better than with other lenders?
- Interest as low as 4.8%
- Revolving line of credit up to $200K
- Get approved in 24 hours
- Funds whenever you need
- Pay only for what you use
- No maintenance fees
- No unused credit fees
- No prepayment penalties