Business Line of Credit: What Is It and Why Get One? (2021) | Fast Capital 360

a business line of credit what is it and why should you consider this kind of financing well one word comes to mind flexibility getting a line of credit for your business gives you access to funds that you can use whenever your company needs a boost in financing and pretty much for whatever reason like a credit card it lets you withdraw what you need when you need it and you only pay interest on what you borrow this is the Swiss Army knife of small business financing getting a line of credit for your company might be the perfect financial solution you see the bottom line is you have a revolving pool of capital at your disposal welcome to fast capital 360s youtube channel where we spell out and demystify the nuanced world of small business financing and management subscribe below for more videos just like this and let's start growing your small business all right let's get back to the topic at hand business lines of credit there are two types of business lines of credit secured and unsecured secured business lines of credit require businesses to provide collateral to secure financing the collateral typically is an asset that the lender can take ownership of and liquidate to pay off the remaining balance in the event of a default unsecured business lines of credit can be obtained without collateral this means if the company defaults on the financing the lender would have no pledged securities to use to recoup any losses that sounds risky and it is but lenders of unsecured credit lines protect themselves by other means including providing lower credit limits charging higher business line of credit rates shortening the repayment period and requiring a personal guaranteed commitment now you might ask should I get a business loan or a line of credit well business lines of credit give you the capacity to handle emergencies and opportunities equally offering the piece mine and security you need to manage your cash flow best if flexible financing fits your company's needs consider applying for a business line of credit online with an alternative lender or through a bank conventional lenders typically require a strong revenue and at least a few years of history on the other hand online lenders tend to have looser qualification requirements because of that rates are often higher terms shorter and credit limits lower online lenders are also known for their speed in many cases it's possible to apply for and receive funds in a 24 to 48 hour window so if you found this video helpful please hit the like button and subscribe for more quality small business advice like this also check out our social links in the description below thanks for watching and I'll see you next time

Channel: Fast Capital 360

Views: 18,607

Keywords: business line of credit, business credit, business lines of credit, line of credit, how to get a business line of credit, how to build business credit, business credit lines, business credit card, lines of credit, business line of credit requirements, business line of credit without personal guarantee, small business loans, business funding, line of credit for small business, business credit cards, business loan, bad credit business loan, bad credit, Fast Capital 360, 2020

Id: yPWrqJV2G3c

Length: 3min 23sec (203 seconds)

Published: Fri Mar 13 2020