Top 3 Business Credit Line Options
Any entrepreneur is able to obtain business credit, regardless of whether they run a
new business or have been denied funding in the past. The best time to start
building credit lines is as soon as possible. Cash flow issues are a primary reason
why businesses fail. When facing difficulties, business owners often require more
money than they currently have on hand, which can lead to them closing down.
During an economic recession, having access to revolving credit is especially
important. Revolving credit is a type of credit that can be used repeatedly as
needed to adapt to unexpected economic changes
Top 3 Business Credit Line Options
Fundability
To be approved for credit lines, it’s important to check your business’s
creditworthiness or “fundability”. Fundability is a method used by lenders and credit
issuers to decide on approval, interest rates, terms, and the total amount of credit
that can be extended to your business. Improving your company’s creditworthiness
is crucial in getting the most credit at the best terms. Lenders and credit issuers will
assess how your business is set up to determine its credibility and legitimacy. In
order to establish a fundable foundation, you will need a corporate business entity,
an EIN, DUNS Number, a physical address, phone number, 411 listing, a website,
email, and a bank account
Fundbox Credit Line
With Fundbox, you can get approved for up to $150,000 in funding. Fundbox loan is
not based on your personal credit score, so even entrepreneurs with average credit
can be approved. To qualify for this loan, you only need to have been in operation
for six months, so you don’t need to have a long-established business. You can also
be eligible for low interest rates as low as 0.5% per week that the money is
outstanding. If you buy and pay off products on a regular weekly basis, you’ll pay
relatively little interest on this credit line. Fundbox uses artificial intelligence (AI) to
review your business’s bank account, so you don’t need to provide additional
documents such as profit and loss statements, balance sheets, or bank statements.
Using AI technology also results in very fast approval, often within just one day.
Credit Line Hybrid
Credit Line Hybrid is a unique product that combines the best features of credit cards
and credit lines into one. One of the biggest advantages of a credit line is that you can
withdraw cash at a low interest rate without incurring the high cash advance fees (up to
20%) that you would with a credit card. With this credit line, you can withdraw cash
from the actual credit lines at 0% APR for up to 18 months. Start-ups and high-risk
businesses can be approved for up to $150,000 in funding. You need a solid personal
credit score between 680 and 700 to be approved, but no collateral is required. If you
don’t have a good credit score, you can apply with a guarantor. The credit line also
reports to business credit bureaus.
Secured Credit Lines
Even if you have a low credit score as a new business, you can still be approved for
secured credit lines. Interest rates as low as 1-5% are available. You can use various
forms of collateral such as stocks, bonds, 401Ks, IRAs, commercial real estate,
inventories, and equipment to secure credit lines.