A business line of credit is a financing tool offered by most business banks. In a nutshell it’s a source of capital that you can access at any time up to a certain amount agreed upon by you and the bank. Usually, there is no collateral required to get approved, and it’s an ideal tool for businesses that are at least 2 years old.
A business line of credit is typically revolving like a credit card and it has no fixed payment terms and is based on an adjustable market based interest rate. Some have a feature of only requiring monthly interest only payments to be made in order to keep the payments small while your business grows. In most cases you can elect to make the full monthly payment of both the principle and interest when you want to and can pay the full balance at any time without penalty prior to the maturity date.
The amount your business is able to receive from a business line of credit will depend on your business past gross annual revenues and projected annual cash flow.
HOT Tip: Most banks will not require business tax returns and profit and loss statements when you keep your credit line of request below $50k.
A good test to see if your business will qualify is to examine your business bank rating to determine if there has been a sufficient average daily balance to adequately support the line of credit repayment. Typically a low 5 bank rating can grant you an approval so be sure to establish a good rating prior to applying.
Here’s what you need to apply for a business line of credit
Business Information
•Business name
•Business address (physical address, no P.O. Boxes)
•Business phone number
•Business fax number
•Business Taxpayer Identification Number(s) (TIN) or Social Security Number(s) (SSN)
•Business Duns Number
•Date the business was established
•Ownership type
•Number of owners
•Gross Annual revenue or sales
•Business banking account number(s) and balance(s)
Business Owner Information
•Name
•Home address
•Home phone number
•Social Security Number(s)
•Country of Citizenship if not United States
•Date of Birth
•Percentage of ownership
•Annual household income
•Personal savings and/or checking account number(s) and balance(s)
Contact Information
•Primary contact (must be an owner of the business)
•Primary contact phone number
•Primary contact email address
One of my preferred banks for business lines of credit is Wells Fargo.
Other banks for business lines of credit that I recommend are:
For a complete list of our preferred lenders join my business credit community today!
Remember – Abundance is not something we acquire. It is something we tune into. ~ Wayne Dyer
To Your Success!
Marco Carbajo
About the Author
Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below =>
Statistics show that over 65% off all small businesses use credit cards on a regular basis; but the problem is less than half of those credit cards are actually in the business name. The others continue to use the owner’s personal credit cards for business transactions.
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in the SBA Community, American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.