Sometimes, business owners require additional finances to grow and scale their business. While this can be obtained by collaborating with investors, many business owners choose to open a business line of credit instead.
A business line of credit is similar to a credit card. Business owners can access a set amount of funds or money through their business line of credit without having to pull from their own accounts. Comparable to credit cards, there’s a pre-set limit on how much money they can withdraw or use. This money must then be repaid within a given timeframe.
There are many benefits associated with getting a business line of credit. For example, it can help company owners scale their business by investing in new tools, tech, or development strategies. In emergency scenarios, it can provide businesses with additional financial support when they need it most. Once approved, they can access these funds quickly, reducing unnecessary stress, turmoil, and financial insecurity.
Typically, your credit score will play a role in determining both your eligibility for credit and the limit you’ll receive on your line of credit, especially if you are taking out a line of credit from a traditional bank. However, this is not the only determining factor. For example, lenders will also take your monthly gross sales into account, cash flow, and any collateral you can put forward.
As such, while it is not possible to get a business line of credit with no credit check, you do not necessarily need to have the “best” credit score.
When looking into alternative funding for their company, many business owners quickly disregard opening a line of credit. For example, they may prefer to take out a small loan instead or to reach out to investors directly.
However, as it is possible to take out a business line without needing a perfect credit score, it’s an option that many should take a closer look at. Furthermore, when using this form of funding, business owners only accrue interest when the credit is taken out, which returns to zero once this has been repaid. As such, this is a great low-cost way to better your business’s financial standing.
At 1West, we can help you to get a business line of credit if you have a FICO (Fair Isaac Corporation) of 500 or above, have been in operation for more than three months, and are bringing in 10k in monthly gross sales.
If you’d like to learn more, please do not hesitate to get in touch today. We’d be happy to discuss your options with you in more detail, ensuring that you can gain access to the revolving capital you need.
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