Small Business Line of Credit: $5,000 – $350,000
How to Get a Small Business Line of Credits? Best Options:
The small business line of credit borrowing limits — typically ranging from $5,000 – $350,000. SEG Funding business lines of credit give you flexible access to the capital whenever you need them.
A Small business line of credit is a premium type of financing to manage cash flow and everyday operations. Unlike a business loan, a line of credit allows businesses to draw upon the pre-approved funds to address capital needs, payroll, operations and gaps in cash flow. As you pay it down, the funds become accessible again on a revolving basis, to utilize over and over again. You are only charged interest when the line of credit is used and your payment is only based on that dollar amount used.
What is a Small Business Line of Credit & How Does it Work?
Small business lines of credit are the most commonly requested form of financing. The business line of credit is very flexible and can be used at the moments notice by making a withdrawal, writing a check, transferring the funds or accessing the line of credit through a card. You don't have to reapply each time you want to borrow the money. As you repay your business line of credit, more funds become available for you to use as needs arise. This flexibility enables businesses to Start, Expand or Grow their operations by using that line of credit.
Business lines of credit may be unsecured, or secured, depending on your company's situation, credit and borrowing history. There is no set term on a business line of a credit but most lines are structured to mature anywhere from three to ten years. Before the maturity date, the bank/lender may ask you to demonstrate your ability to periodically pay it down to zero. The lender will typically renew the line of credit after it's maturity date if you've been making payments on time and utilizing it like a true line of credit. Many companies see an increased limit on their line of credit as they use it up and down.
SEG Funding will determine the appropriate lender that will approve your company for a Small Business Line of Credit. Apply online or Contact us today!