Undeniable Benefits That Come With A Business Line Of Credit
Do you want to take your business to the next level and finally find some breathing room and financial freedom in the process?
Well, get ready, because we’re going to teach you everything you need to know about business lines of credit, because it may be the missing element to the full potential your business is aching for right now. No more living through snags in cash flow or having to turn down golden opportunities because you just can’t commit to them.
You need stability and extra wiggle room for your business to grow and prosper. Something like a Bluevine business line of credit could be exactly the security blanket your company needs to make you feel sheltered, supported, and ready for a world of new exploration. Stop worrying about missing the mark and start dreaming about all of the goals you can finally achieve.
What is a Business Line of Credit?
Picture this. An extra safeguard to keep in your back pocket in your business’s quest to own the ultimate financial utility belt. That’s basically what a business line of credit is. It’s a loan with a pre-approved amount that you can draw from whenever you need, as long as everything falls within the credit range. Unlike a traditional loan where you have to take out the entire amount to start getting charged interest, with a business line of credit, you only have to worry about interest on the money that you actually dip into.
10 Rock-Solid Reasons Why You Need a Business Line of Credit
Conquer Cash Flow Chaos
Here’s the thing: It happens to the best of us. Cash flow waxes and wanes. A line of credit for your business means no gap between your bills and income. Especially when things are a bit on the slow side, or for those unexpected emergencies. Say goodbye to tossing and turning and worrying about how you’re going to make payroll! You now have a financial savior you can dip into in a pinch!
Seize Golden Opportunities
That killer deal on that product you use every day? That opportunity to break into a new market? Having a business line of credit means you can jump all over it and not have that pesky cash flow stumbling block in your way! With the cash readily available, you’ll be able to take full advantage — giving you a leg up on the competition and an even stronger play.
Manage Seasonal Surges Like a Pro
For a lot of businesses, peaks and valleys are perfectly normal. With line of credit terms, you can afford to stock more inventory and bring on that extra staffing during your high seasons. Making sure you’re able to keep up with all the customers without breaking the bank.
Effortless Expense Management
Did some unexpected expenses creep up on you? Perhaps you urgently need a marketing campaign or you need some new equipment? These are things you can’t put off until you have the cash on hand. With a line of credit, you don’t have to. You can take care of what you need to and keep running your daily operations without any kind of disruption either (or needing to use your personal savings).
Build Rock-Solid Credit History
Smart use of a business line of credit can impact your small business credit score in a positive way. A good credit rating means that you will be eligible for better loan terms and possibilities in the future, thus paving the way for your small business to grow even more.
Negotiate Like a Boss
Having a line of credit can leverage you when negotiating with suppliers and vendors. You can grab an early payment discount, or you can negotiate for good payment terms knowing that you have the funds to back you up.
Streamlined Simplicity
While applying for a loan can sometimes be time-consuming, applying for a business line of credit can be generally quick and simple. Assuming that you are qualified, the fund is accessible right away after being approved.
Only Pay for What You Use
This is a very good benefit! With a business line of credit, you get to pay back the money you used — and only that — plus the interest. But with a traditional loan, generally, you pay the interest on the whole amount from day one.
Flexibility Is Your Friend
Businesses change course direction on a whim. And a line of credit can give you the flexibility to work with and around said changes. This is flexibility at its best. With a line of credit, you can borrow and pay back money according to your needs. No rigid repayment terms and schedules to follow.
Choosing Wisely: Why the Right Financial Institution Matters
After you have determined that you must have a business line of credit and why you should have one, you must now find the appropriate banking institution. Not all banking institutions are the same. You need to use a bank that you can trust and one that will adapt to your business. The bank you ultimately choose will impact the interest rates, the fees, and how you experience the line of credit. Take your time. Do your homework. And choose the plan that works best for you!
Key Considerations When Choosing a Lender:
- Interest Rates and Fees: Like we said before, you need to find a lender that offers great interest rates. You also want to find one that is transparent with their fees. Look at the Annual Percentage Rate (APR) to see the overall cost of borrowing from each lender.
- Repayment Terms: You’re going to want to know the repayment schedule and if there are any fees for paying early or if there are penalties for late payments. Choose a lender whose repayment terms are in line with your business’s cash flow.
- Creditworthiness Requirements: Different lenders have different requirements in this area. Be sure your business meets the minimum credit score, revenue, and time-in-business requirement.
- Customer Service and Support: Make sure your prospective lender has a good customer service team. Yes, it seems like something innocuous, but it can be very helpful, especially when you need to ask questions regarding your account or line of credit. Make sure you pick a lender that has excellent customer service — like Bluevine does.
- Application Process: Save yourself time by going with a lender that has a simple way to apply! Also, maybe one that doesn’t require a lot of paperwork (but that’s up to you).
So, don’t just take the first offer that you get. Compare and pick a lender that is best for your business and financial needs. Then this could be the start of a new and bright future for your business.
A Business Line Of Credit: The Secret Weapon That Will Keep You On The Winning Side
At first glance, a business line of credit just feels like a fancy-schmancy way of saying debt! But as you can see, it isn’t. It can be your business’s “ace in the hole” that will always keep you on top!
