Going through a cash flow crunch need not be the end of your business. Consider business lines of credit to see you through the slow season. A bit like a credit card for an individual, an unsecured line of credit for your company can provide you cash on demand when you need it. You’ll enjoy a reasonable interest rate, with versatile payment terms. The three main advantages of an unsecured business lines of credit are:
Quick cash when needed
Use a little or a lot of your credit limit, as needed. You could use the extra funds to jump on business opportunities that may come up or to keep operating through a temporary downturn. Once you have the line, it will remain available, without a need to reapply and await approval for a specific business need.
Access to high credit limits and flexible terms
You can effectively give your business a loan anytime, for a big purchase or other business need. You may receive incentives like zero percent offers if you pay the debt off within one year, for example. Unlike a standard business loan, this funding option has no fixed, static monthly payment, apart from a small minimum payment (a percentage of the outstanding balance). You can pay more than the minimum to free up more of your credit line for future needs or pay off the whole balance if you like.
Simple business expense accounting and protections
With a business credit line you can easily keep personal and company expenses separate. This can make doing taxes simpler, and you can also begin building a credit history in your business name. In addition, you can protect your personal credit rating, since this line is under the business name.
To learn more about business lines of credit for your company, contact IRC Commercial Lending today.