In this white paper we explore why your business should consider the fast and flexible lending option of a Business Line of Credit (BLOC).
Many small businesses have emerged from the pandemic on a growth footing. However, for many, entering a growth phase can make it difficult to gauge their cash flow needs, often experiencing capital or inventory shortfalls. As staff is added or new equipment purchased, there can be an ebb and flow with a business’s cash flow that can often lead to a temporary cash crunch. In many cases, the need for a capital infusion is temporary, so long-term financing may not make sense. The ideal solution for many businesses is to open a business line of credit (BLOC) that can provide quick access to cash when needed.
What Exactly is a Business Line of Credit (BLOC)?
A business LOC is not unlike any other revolving credit account, such as a credit card or home equity line of credit, that establishes an amount of credit that can be tapped at any time, for any reason. You can spend up to that amount, but as you make payments, money becomes available to you again. Payments are flexible, allowing you to only pay interest charges when cash is tight. The revolving nature of a line of credit lets you use this financing source for a long time, as long as you keep up with your payments.
Lenders rely on specific criteria such as the business’s revenue history, projected cash flow, and financial stability to determine the amount of credit available. Compared to a business credit card, the limits for lines of credit may be higher, and the Annual Percentage Rates are often lower.
Download the entire white paper below.