Applying For A Line Of Credit At Your Bank!

Your business will be in a much better position to apply for bank financing now that you have established a favorable banking relationship and positive bank rating. A line of credit has always been favored among business owners because it provides you access to cash to make purchases that are either too large for business credit cards or too small to take out a business loan.

The credit line amount that gets issued is also a major benefit and can range from as little as $10k to upwards of $100k. Having access to this type of cash on demand allows you to cover the costs of any unforeseen expenses or major purchases your business may incur in the future.

A line of credit:

•Provides access to the same amount of cash as a loan would, and usually faster.
•Allows you the opportunity to write checks against your line of credit for any type of business expense, any time you want.
•Saves you money because it gives you a lower rate of interest compared to an unsecured loan.

When you apply, your bank will review your banking relationship and bank ratings. They will also order a business and personal credit check. If you do not have sufficient collateral then you will probably need to supply financials and tax returns.

Remember, the stronger you’re bank and business credit ratings are the less your personal credit will weigh on the approval process.

There are many kinds of lines of credit you can apply for, such as:

1.Unsecured business line of credit
2.Secured business line of credit
3.Stated business income line of credit
4.Commercial business line of credit
5.Line of credit business loan
6.Seasonal business line of credit
7.Committed or uncommitted line of credit

Each one of these types of credit lines serves a specific purpose. For example, a committed line of credit is when a financial institution is legally bound to provide the funds, rather than giving the lender the option of suspending or canceling your credit line based on market conditions.

This type of credit line provides you with the security of knowing that your line of credit won’t be slashed at anytime. Unfortunately, many small business owners found themselves completely cash strapped during the recent economic downturn when banks were closing and cutting credit lines left and right.

So before you apply for a line of credit it’s important to be fully knowledgeable on all the types that are available. Whether you have less than perfect credit, a seasonal business, collateral, or strong financials, there may be a specific type of credit line that is better suited to fit your needs and that of your business.

Working Capital Factoring

Working Capital Factoring - Giving your business fast cash . . . now!

Working capital factoring, also known as account receivable financing is the purchasing of your accounts receivable for immediate cash.

Factoring gives you money when you need it, rather than waiting 30, 60, 90 days or longer for payment from your customers.

Your business can now get what it needs - when it needs it . . . now! ##Immediate access to funding.

##The ability to grow

##A steady source of working capital

##Many reputable lenders have experienced financial assitance staff

##Flexible financing options

The right solution for your business . . . Working capital factoring can benefit your business. All you need to start is commercial accounts receivables.

It's all about service . . . In addition to improving your cash flow, many lenders offer valuable support services which are tailored to meet your business needs and usually include, as a minimum, the following:

##Purchase Guarantees

##Protection against bad debt losses

##Import/export trade services

##Maintenance of up-to-date accounts receivable records

##Collection of accounts

##Cash management services

##Inventory and equipment financing

##Letters of Credit

How Anyone Can Get Approved for Business Financing