Revolving credit is a type of borrowing that allows you a greater degree of flexibility in comparison to traditional loans. Unlike a traditional loan which provides a borrower with a fixed amount of money, revolving credit allows the borrower to access capital from a predetermined limit whenever they need. Many business owners use revolving credit to ensure that they can meet short term costs during seasonal periods or occasional gaps in cash flow. In addition, this type of credit ensures that your business is prepared to take advantage of opportunities at short notice. You pay back the borrowed amount overtime, and you only pay interest on the money that you access. Revolving credit can be an extremely effective method of controlling your cash flow.
Should My Business Get a Revolving Line of Credit?
Revolving credit is infinitely more flexible than a traditional loan. It can provide you with access to capital at short notice, this prevents any time related complications in times of emergencies. For this reason, this type of credit is favored for short-notice expenses and bills. It helps many of our clients manage the turbulence of business: payroll, cash-flow gaps, unforeseen investments, unforeseen expenses, and severe emergencies. The way that revolving credit is structured allows the borrower to borrow from the predetermined amount quickly, as well as pay the borrowed amount back efficiently. If you’re aware that you will most likely need additional funds in the future, but you’re not sure exactly when, revolving credit can allow you to be prepared for any shortage in cash flow. It is advisable you have money saved for a rainy day, but this can be impossible if you’ve just started your business and all of your capital is tied up in operations and outstanding costs. Revolving credit was designed to ensure that all small business owners have an effective rainy day fund — don’t risk your businesses success by not having working capital on hand.
What’s the Process?
Applying for any form of finance through a traditional lender can be a extremely frustrating. They will want extensive data on every aspect of your business — some of which you may not have. On top of this, they will often take weeks or months to come to a lending decision. This can be especially problematic if you have to raise funds at short notice, or if you have an emergency arise within your business. One of our primary goals is to create a less complicated application process for our clients. We’ve invested heavily in making the entire application process as easy and painless as possible. We use simple revenue data to allow automated approval through our online application portal. You won’t have to visit a branch or take unnecessary time out of your day to get the money you need to run a successful business. We are able to provide our clients with lines of credit of up to $150,000. So, what are you waiting for? Apply for revolving credit through our online portal today!
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Unsecured Small Business Loans