What is a Business Line of Credit?
A business line of credit is a form of small business funding that provides a pool of funds to draw from when you need capital for business expenses. Draw on your small business line of credit to easily access capital to handle cash flow gaps, get more working capital, buy inventory, or address almost any other emergency or opportunity.
Maximum Loan Amount Of $10,000 to $1M
Since lines of credit are so flexible, they can be used for payroll and problems, as well as larger purchases.
Loan Term Lasts 6 Months to 5 Years
You’ll only repay what you withdraw, and you’ll do so with an agreed-upon interest rate and repayment term.
Interest Rates Starting at 7%
Business lines of credit and credit cards are both forms of “revolving” credit, but these lines of credit have no fees.
Get Your Line as fast as 1 Day
Submit your application and get approved in as little as 6 hours and get your line of credit today.
Who Qualifies for a Business Line of Credit?
Younger, less established businesses might be able to qualify for short-term lines of credit, while medium-term lines of credit are more for businesses with good credit and a solid financial history. The maximum amount of funding available, introductory duration of the credit line, and repayment terms depend on your business’s revenues, credit rating, history, and other factors.
How to Apply for a Business Line of Credit?
A business line of credit application can be a very easy process, depending on the line of credit lender you’re working with. Online business line of credit providers will have quick, streamlined applications, thanks to the use of technology in their underwriting processes. On the other hand, traditional banks will have more intensive business line of credit applications. Generally speaking, online business line of credit providers offers smaller, shorter-term options that will come with an easy and fast application process. Meanwhile, banks will offer larger and longer-term options might require more paperwork and could take slightly longer to fund.
How Does a Business Line of Credit Work?
At Cheddar Capital we know surprises happen, but how can you expect the unexpected when it comes to your business? A single accident could set you back a long way if you’re not prepared. That’s why flexible business financing is so important. Cheddar Capital helps thousands of small business owners get that flexible funding in the form of a business line of credit. Simply put, a business line of credit is pretty similar to a personal line of credit (like your credit card). Business lines of credit can come secured, backed by collateral like inventory, accounts receivable, and so on, or unsecured, backed by your personal guarantee. You can use a small business line of credit to help finance ongoing operating expenses, cover cash flow gaps, take advantage of unexpected opportunities, and provide a cushion to protect against emergencies. Since lines of credit are so flexible, they can also be used for payroll, seasonal expenses, and unforeseen problems or investments, as well as larger purchases.
What Will a Business Line of Credit Cost You?
The basic cost of a business line of credit is pretty straightforward: when you take, you pay. Unlike with a traditional term loan, which is one big lump sum with regular repayments, with a business line of credit you’ll only pay interest on the cash you draw. Let’s say it’s time to pay the bills, but you’re still waiting to receive payment from your own customers making it a bit tough for you to pay what you owe. BigTex only requires you to pay back what you spent, plus any interest.
This group was professional, timely and was a pleasure to work with. The turnaround time was fast and even with my less than perfect credit record they had me funded in a few days. Two thumbs way up!!!
Physician, New Jersey
I was very pleased with the customer service and speed of Cheddar. In this day and age it is becoming harder to find good customer service anywhere.
Funding was easy. Cheddar made it easy and fast to get the needed capital for my business.
Energy Consultant, Washington