A business line of credit can be used two fund any of your businesses normal operations, and you can establish a line of credit up to a limit which are provider specifies. Interest is applied when you use some of those funds, and when the withdrawn amounts are repaid, you have full access to the line of credit, just as if you had used a credit card.
Using a line of credit for current and future funding
If you have a business line of credit that starts out with a $10,000 balance, and you use up $1,500 worth of that money during a given month, you would still have access to $8,500 in your line of credit. As soon as you repay the $1,500 which you withdrew, you would once again have access to the full $10,000 balance. The beauty of using a line of credit is that you can literally use it for any business purpose whatsoever, which amounts to tremendous flexibility.
In addition, you don’t really need to have a stellar credit history in order to secure lines of credit, unless you are looking to obtain an unsecured line of credit. In fact, by making regular use of your lines of credit, you can actually build up your credit score, assuming that you make all of your payments on time.
There are a few things you should be aware of though, with your line of credit, such as the fact that it is subject to an annual review, based on your usage history. If you’ve made all your payments on time and have shown yourself to be a good customer, there probably won’t be any adverse changes to your account. However, if you are constantly withdrawing money and steadily reducing your outstanding balance, or if you are not making your payments on time, your business may be subject to changing conditions which are imposed by the lender.
Business lines of credit with Fast Commercial Money
If your company would benefit by having a business line of credit, we would like to hear from you at Fast Commercial Money. Contact us today, to see if your business qualifies for lines of credit which can be used for almost any business purpose.