A business line of credit can give you more flexibility. You will be able to borrow money and pay interest on the money that you borrow. You can repay and draw the funds as often as you wish as long as you stay within the credit limit.
Do you need to buy inventory? Do you need help managing your cash flow? Do you have a surprise expense? If the answer to any of those questions is yes, then you can get a business line of credit.
A business line of credit is typically an unsecured debt. This means that you can get the line of credit without using any collateral. It is a lot like having a business credit card. A line of credit is not the same as a business loan. If you get a business loan, then you will get money that you can repay over the course of a fixed period. You may want to take out a business loan if need a longer-term investment.
Lines of Credit up to $100,000
Ondeck, Kabbage, Streetshares and Bluevine all offer credit lines up to $100,000. If you just started your business, then you should look into Bluevine. Streetshares is a great option if you are looking a loan that will give you the lowest interest rate. Ondeck or Kabbage will allow you to get funding the fastest.
You can get a loan from Bluevine after being in business for six months. You will be able to make payments on the loan every week over the course of six months. You will be able to get approved for a loan within 24 hours. You need to have a minimum credit score of at least 600. Your business will also have to make at least $60,000 in revenue.
StreetShares offers you a low APR range that ranges from nine to 40 percent. Your minimum revenue will have to be at least $25,000. You will need to have a minimum credit score of 600. Even though the maximum credit line is $100,000, you will only be able to get approved for an amount that is equal to 20 percent of your annual revenue.
Kabbage is a good option if you want to get approved fast. It is also a good option if you have bad credit. You must be in business for at least one year and make at least $50,000 per year before you can qualify for a loan from Kabbage.
Ondeck also allows you get approved fast for a loan, and it has lower interest rates than Kabbage. However, you must have a minimum credit score of 600 and make at least $75,000 per year.
You can get a line of credit up to $300,000 from Lending Club. You must make at least $75,000 and have a minimum credit score of 600. The interest rate ranges from eight to 35 percent. You will also be charged a one to two percent draw fee every time that you take out money.