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Business Line of Credit: Getting the Best Rates and Terms

Are your business plans stalled due to a lack of funds? A business line of credit can help cover unexpected payroll and unexpected financial hurdles. You may never need it, but having a financial cushion in place will give you the peace of mind in knowing unexpected costs will be covered.

At Fast Business Financial, we understand the importance of small businesses having reliable access to working capital. In fact, by Small Business Administration estimates, over three-quarters of small businesses rely on credit to grow their business.

Before you shop credit lines for your business, read this guide. Fast Business Financial puts it all into perspective, and this guide will help you to qualify, apply for, and get the best terms and rates on a business line of credit.

Current Rates and Terms

Fast Business Financial skips the brokers, banks, and boards to offer some of the best rates on business lines of credit.

Borrow from Term lengths APR
$10,000 to $1,000,000+ 26 weeks to 5 years 7% to 25%
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What are Small Business Lines of Credit?

Think you don’t know anything about small business lines of credit? There’s a good chance you already have something similar to this borrowing tool in your purse or wallet. A business line of credit operates along the same lines as a credit card — albeit one with better rates, terms, and a higher spending limit.

1 Only pay interest on withdrawals.

Once you’re approved for this type of business financing, the lender will provide you with a credit line. Just like credit cards, the amount you are allowed to borrow and interest rate rely heavily on your credit score, time in business, revenue, and other factors.

2 Borrow as much (or as little) as you like.

With a credit line, you can choose to borrow as much or as little as you need, up to your credit limit. Most credit lines for small businesses are somewhere in the range of $50,000 to $500,000. At Fast Business Financial, we can approve lines of credit up to $1,000,000.

3 Give your business financial flexibility.

Many small business owners prefer lines of credit over receiving a lump sum as it allows them flexibility and discretion in terms of how and when the working capital will be applied.

4 How to Qualify

Generally speaking, most financial lenders only offer their best rates and terms to those with FICO® scores of 680 or better. If you are looking to take out a business line of credit but bad credit is giving you second thoughts, we have some great news for you.

Credit Lines up to $1 Million

Fast Business Financial isn’t just a clever name. Most businesses can apply for and receive working capital within 24 hours. This is just one of the many perks in choosing Fast Business Financial. You can use your small business line of credit to:

  • Cover unexpected expenses
  • Build a financial buffer
  • Finance business opportunities
  • …and more

Working with Fast Business Financial, small business owners can qualify for lines of credit ranging from $10,000 to over $1,000,000.

To discuss your business’ needs, call Fast Business Financial at 866-277-2907 to speak with a lending specialist. When you are ready to apply, simply use our online loan application. A few minutes of your time might get you some of the best rates and terms on a small business line of credit.

The Pros and Cons of Business Credit Lines

For the convenience, flexibility, and manageable repayment terms, many small business owners see business credit lines as the preferred means of borrowing. That isn’t to say that this type of working capital doesn’t have its drawbacks — all loans do.

Before you apply for working capital or a business credit line, keep the following in mind:

The Pros

  • Only pay interest on the amount withdrawn.
  • Those with bad credit can qualify.
  • Steady access to working capital.
  • Cover most types of business expenses.

The Cons

  • Your lender may ask for updated financial information before releasing sizable withdrawals.
  • Those with poor credit scores may have to settle for higher interest rates compared to other loans.
  • Collateral may be required for businesses with high debt-to-revenue ratios.

How to Qualify for a Business Line of Credit with Bad Credit

Generally speaking, most financial lenders only offer their best rates and terms to those with FICO® scores of 680 or better. If you are looking to take out a business line of credit but bad credit is giving you second thoughts, we have some great news for you.

Have solid revenues?

Direct lenders such as Fast Business Financial place more of an emphasis on a business’ revenue stream than credit score alone. When we see steady revenue growth, we see a business that is on the right track, and therefore less of a lending risk. Therefore, even if your credit score is hover somewhere in the neighborhood of 550, you may still qualify for a credit line. We may not be able to promise the same terms and rates as a business with perfect credit, but we can arrange a credit line that will be in the best interest of your business

Build your business as you build credit

Building up your credit score is the main way to fix bad credit. Having a business line of credit (and using it responsibly) rebuilds credit and positions business owners for better financing options in the future. We will be there to answer your questions and help recommend which borrowing options are right for your business.

Need Financing… and FAST?

When you apply for working capital through Fast Business Financial, you will know within moments whether your loan application has been approved. And, in most instances, businesses can apply and tap into working capital within 48 hours.

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What Documentation Will I Need?

Fast Business Financial has one of the most streamlined application processes in the financial marketplace. Although, in certain instances we may seek additional information in order to approve and process your loan. Some of the items we may ask you to provide include:

  • Tax returns (Business and personal)
  • Voided check from business account
  • FICO® credit score
  • Financial statements
  • State-issued identification
  • Prepared profit and loss statement
  • Up-to-date balance sheet

When applying for a small business credit line, be sure you have access to these documents just in case they are required.

Business Term Loan vs. Line of Credit: Which Works Best for Your Business?

Many small business owners looking to use a line of credit as a driver of revenue growth will either turn to a line of credit or term loan. The key question is, which of these borrowing options will best serve the needs of your business?

Choose a term loan for investments. Here’s a simple rule-of-thumb on how to decide between these two types of business loans. If you have a clear picture of how you will you will apply the funds and you can put this plan into motion as soon as the funds are available, consider taking a business term loan. Term loans work best when they are applied to large investments such as equipment, vehicles, and property. If you take out a term loan without a clear idea of how you will apply the funds, you could find yourself paying interests on funds that are not actively generating profits for your business (not a recommended financing strategy).

Choose a line of credit for the unexpected. Businesses often take out lines of credit for the same reasons individuals take out personal credit cards — to cover unanticipated expenses. Let’s say you operate a business with a net 30 repayment cycle. But, you need the funds now in order to cover payroll and other expenses. A business line of credit can help tide you over until your invoices are paid. Other business owners maintain lines of credit in order to cover fluctuations in inventory purchases.

Lines of credit are not designed to cover large, long-term investments. A business that plows through a credit line may have difficulty securing other loans or getting a credit line increase. Keep this in mind when you apply for financing.

Apply Today

Give your business the credit it deserves — apply for a business line of credit with Fast Business Financial. The process takes just a few minutes and you will know instantly whether you are approved and what terms and rates we can offer you.

Closing Thoughts

With all the uncertainty that comes with operating a small business, having a line of credit available can give you some much-deserved peace of mind and financial flexibility. You may never need it, but you’ll be glad to know that if something unexpected should come up it can be dealt with accordingly.

You can chase the best business loans but remember: the best loan is the one that works best for your business. If you have a question on which type of loan is best for you, call Fast Business Financial at 866-277-2907 and speak with a lending specialist.

Direct Lenders Keep Small Businesses Rolling

After the sub-prime housing bust that led to the “Great Recession” of 2007-2008, many small businesses found it increasingly difficult to secure business loans through traditional banks. Their credit score hadn’t changed, and revenues remained on track, yet small- and medium-sized enterprises suddenly found their loan applications being summarily rejected.

The Parallel Rise of Small Businesses and Direct Lenders

After the major banks clamped down on capital, direct lenders such as Fast Business Financial stepped in to fill the credit void. We remain proud supported of small businesses to this day.

When you work with a direct lender like Fast Business Financial, you are bypassing private equity firms, investment banks, and brokerage houses, aka “the middleman.” Since direct lenders have greatly reduced overhead, many are able to lend at rates more in line with the realities of owning and operating a small business. And, direct lenders are able to provide non-traditional business loans such as revenue-based financing.

Direct lenders shook up the oligopoly of the big banks, that is… direct lenders (such as Fast Business Financial) created true competition in small business lending.

Proud to Support Small Businesses

In the end, the financial downturn that affected many businesses a decade ago may have been a blessing in disguise; there are not only more borrowing options for small businesses, but BETTER options. And, in turn, small businesses are having a huge impact on the economy, accounting for 66% of all new private-sector jobs created since 2014 (Napa Valley Register).

Fast Business Financial is proud to support small businesses. We look forward to working with you in the near future!

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