BUSINESS LINE OF CREDIT
Business Line of Credit for Small Businesses in Florida
If you are looking to have a business line of credit in Florida, Maven-Financial offers just that and more financial solutions that can help you grow your business. Get to know what business line of credit is all about, how it works, it’s advantages and disadvantages, how to qualify, and the steps to take to apply for it.
What is a Business Line of Credit?
A business line of credit is a type of small business loan that can provide the flexibility that regular business loans cannot. It’s typically an unsecured way to borrow money and is ideal for short term needs, seasonal businesses, businesses that need help in managing cash flow, or handling unexpected expenses.
How does the Business Line of Credit work?
A business line of credit works similarly to a credit card. It’s basically an open-end credit account that allows business owners to spend money, repay it, and spend it again in a never-ending cycle.
Businesses can borrow up to a certain limit and just pay the interest on the portion of money borrowed. Unlike a term loan, businesses can draw and repay funds as long as it doesn’t exceed the credit limit and borrowers can keep reusing and repaying as long as payments are made on time.
The business line of credit borrowing limits ranges from $1,000 to $250,000 which is smaller than a term loan.
Pros:
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Flexible borrowing
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Typically no collateral required
Cons:
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May have maintenance fee or withdrawal fee
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Good credit and consistent revenue required
Best for:
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Short term needs
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Seasonal business to manage cash flow
What are the advantages and disadvantages of having a business line of credit?
Having a business line of credit comes with its advantages and disadvantages. The disadvantages would be it may have a maintenance fee or a withdrawal fee and you would have to have good credit and consistent revenue to qualify. The advantage is that the terms are flexible, it typically does not require collateral, and you only pay the interest on the portion of the money borrowed.
How to qualify for a business line of credit?
To qualify for a business line of credit, businesses, as mentioned earlier, must have a good credit history with consistent revenue. Personal and business tax returns, business financial statements like a balance sheet or profit-and-loss statements, and bank account information are usually the required documents to qualify. For online businesses, required documents aren’t as tedious.
How do I apply for a business line of credit with Maven Financial?
Having a business line of credit with Maven Financial can be done in three (3) easy steps. First, fill out a Quick Apply application. Maven Financial then reviews your application to know the goals you have. And within 24 hours, we give you programs that would match your needs. All you have to do is choose one from what we offer and you can receive funding in just 48 hours.
Having a business line of credit with Maven Financial in Florida is a smart choice for business owners who have unexpected expenses and needs that need immediate action. It’s flexible, the application just takes a few minutes and you get funding in just 48 hours. Get a free quote now!