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Why do you need a credit line for business?

One of the great benefits of starting a business is that it is possible to establish a new and separate credit profile that is distinct from your personal credit profile
This means that although you may have poor personal credit, you can structure your new business in a manner that allows you to build a pristine credit profile for your company, allowing you to receive loans, credit cards, lines of credit, etc. that you would not be able to obtain as an individual (and often at better interest rates).
A line of credit is like having a loan on tap: you withdraw money as you need it, up to a certain amount agreed to by your lender. If you know you will need some extra money over time to run or expand your business, a business credit line may be the perfect solution. Lenders typically reserve business credit lines for businesses that have a proven track record. Credit lines may be secured or unsecured, and they usually require you to pay a minimal annual fee to cover administration costs. Many business owners prefer business lines of credit over loans. Here are some reasons to open a credit line for the business:

  • Lower interest rate than credit cards. While rates for credit lines are generally higher than conventional bank loans, they are still lower than credit card rates.
  • Improved cash-flow management. A credit line can help you even out cash flow when fluctuations are predictable, seasonal, or industry-specific. For example, if you routinely purchase inventory that you won’t sell for several months, a line of credit can be a great option.
  • Make purchases too large for a credit card and too small for a loan. There may be times when you need to buy supplies or inventory that are too expensive to put on a credit card — either the total exceeds the limit or the interest rate is too high — but not high enough to warrant taking out a conventional loan. A credit line can cover these costs as long as you do not exceed the maximum amount and pay off the balance within the designated timeframe. A business line of credit is not recommended to finance property or major equipment or to pay employees. A business loan with a longer repayment period and lower interest rate is a better option.
  • Ability to repay and borrow again as needed. Unlike a conventional loan, credit lines let you pay off the balance as you go and continue to borrow again when the need arises.
  • Convenience. What could be more convenient than having a pre-approved line of credit available that you can use with the ease of writing a check? You certainly don’t want to jump through a lot of hoops every time you need to use the money. For most people, ease of use, minimal hassles, and clear step-by-step processes are worth the investment. After all, how much is your time and peace of mind worth? Find a line of credit that is easy to get and easy to use.
  • Changing market conditions. In recent months, top mortgage lenders have closed their doors or severely cut back programs for home buyers. Foreclosures are high. The current housing and mortgage environment is creating pressure on business in general. Unsecured credit is almost impossible to find. If you can find a line of credit today, don’t wait.

What we can do for you?

Increase your business PAYDEX SCORE up to 80-100
Increase your FINANCIAL STRESS SCORE up to 1377-1875
Create line of credit with D&B up to $100,000

For every business we will get the D-U-N-S Number. It is a unique nine-digit identification sequence, which provides unique identifiers of single business entities, while linking corporate family structures together. D&B links the D&B D-U-N-S Numbers of parents, subsidiaries, headquarters and branches on more than 70 million corporate family members around the world. Used by the world’s most influential standards-setting organizations, it is recognized, recommended and/or required by more than 50 global, industry and trade associations, including the United Nations, the U.S. Federal Government, the Australian Government and the European Commission. In today’s global economy, the D&B D-U-N-S Number has become the standard for keeping track of the world’s businesses.