Support Your Company with Business Line of Credit

One of the keys towards attaining business success is a line of credit. After all, it can provide your enterprise with sufficient cash to support a wide range of business-related purposes, at any given time. But, how does a business line of credit work, exactly?

Well, if you get approved for it, you can look forward to receiving a credit account which you can use for covering the costs and expenses that will be incurred by your small shop or store. You can use it to purchase additional office furniture or manufacturing equipment, purchase product inventory, office supplies as well as raw materials; settle your utility bills and other financial obligations, etc.

What’s great about most credit accounts extended to small businesses, such as business credit cards, is they tend to carry high spending limits. That way, entrepreneurs, like you, can charge huge purchases on their credit accounts and make substantial payments to vendors and product suppliers.

[Article: Finance Your Small Business with Business Credit Card ]

How to Get a Business Line of Credit

You can apply for a business line of credit whether you are a start up business or a new business.  Nevertheless, some lending companies that offer business line of credit require that the business must be an established one or must be at least two years in operations.

The available credit line can range anywhere from $10,000 to $100,000, depending on the business’s credit rating.  Of course, if you are an older business with an impressive business credit history, you will surely be provided with a higher credit limit.

Do you need to submit security to get approved for a business line credit?  The great thing is that many lenders offer an unsecured line of credit so there is no need to submit cash deposit as a guarantee for your debts.  However, there is usually a fee to open an account and you must pay annual fees to keep your account active.  Interest rates will also apply if you fail to pay off your balance on your due date.

[Article:  How to Manage Business Credit Cards Successfully]

Other Perks of Business Credit Cards

There are also other benefits when using business credit cards.  First, you can easily monitor your account from your own computer through the Online Account Access option.  That means you don’t have to personally visit your bank to check your account status.

Business credit card issuers also provide an annual summary report which contains all your transactions for the previous year.  This report can be used as reference when preparing your business taxes to make sure that you can enjoy qualified tax deductions.

Some banks offer zero introductory rate which can last for up to 12 months from the time your account has been approved.  As a business credit cardholder, you may also be able to enjoy rewards, exclusive purchase discounts and other perks not available to regular cardholders.  Last but not the least, as you utilize your business line of credit, you are also building your business credit one step at a time.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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