If your business isn’t taking advantage of multiple types of financing, you may be missing out on great opportunities. If you currently have a SBA loan or term loan for equipment financing or real estate purchases, you’re benefitting from excellent low interest rates to grow your business. However, applying for business lines of credit can empower your company’s growth even more. Here are five reasons why every business needs a line of credit with a trustworthy financial organization:
1. Business Flexibility
Smart business means pouncing on amazing opportunities when they appear. Whether it’s obtaining top-tier pricing for inventory purchases or bidding on a large-scale project with lucrative gains, having enough capital gives you the ability to adapt quickly. Unsecured credit allows you to put money to good use without having to wait days or weeks for bank approval.
2. Emergency Capital
Many businesses face ups and downs throughout the year, with some periods of stronger growth and others with a slower cash flow. Seasonal companies benefit enormously from business credit that allows them to take care of monthly essentials until things return to normal. Business lines of credit can handle payroll, taxes and regular expenditures, as well as hiring costs associated with an expanding workforce during periods of intense activity.
This type of credit also helps businesses cope with emergencies. If something unexpected appears, you always have the capital needed to keep the lights on and stay in business.
3. Financial Freedom
Instead of taking on additional investors and losing part of your control over company decisions, let a business line of credit take care of your financing needs. One reason lines of credit are popular is that you have the final say over how money is used. You don’t have to request bank approval before spending.
Do you want to invest in advertising or purchase a new computer system? You can do whatever you want with your credit up to the approved limit, and once you repay the credit, it’s free to use again.
4. Limited Interest Payments
Unlike large-scale loans, business credit only charges you interest on what you use, not the sum total. This can save your company money in the long term, and you feel free to use credit when you need it.
5. Fast Approval
Applying for business lines of credit is relatively simple. An easy-to-understand application, recent financial records, and a quick credit check is usually all that’s required. In many cases, you can have access to credit within 24–48 hours.