Small Business Line of Credit
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Obtaining a line of credit for your small business can help your entrepreneurial spirit take the company to the next level. This line of credit can be a more affordable option than a business loan because you only pay interest on the money you utilize. Acquiring this type of loan depends on your current credit score and how much a bank perceives you as a risk.
For small businesses, a line of credit is a good short-term option that works much like a credit card in the way it provides extra funds or cushion for financing “ongoing working capital.” Credit lines can be used in a variety of ways to benefit your business, including:
- remodeling, expanding or upgrading your facilities;
- buying new technological equipment;
- purchasing extra inventory for future events;
- launching a “new online marketing campaign”;
- creating a “new product prototype” or pursuing a “promising business opportunity”; and
- covering “unexpected expenses.”
No matter which benefit you’re looking for with a small business line of credit, there are some factors to consider when determining if it’s the best financial option for your business’ cash flow.
Top 3 Advantages of Obtaining a Small Business Line of Credit
- Stay in control—A line of credit enables you to further your business goals without bringing on investors, who will likely want at least some, if not a large portion, of control over your business in exchange for their financial backing. You also don’t have to “dip into personal savings or ask friends and family for money.”
- Financial flexibility—As previously mentioned, this credit line gives you more flexibility than a closed-end loan because you only “access money when you need it,” and you don’t have to pay interest on the funds you don’t use.
- Establish credit history—Building a good credit history for your business now helps to better your chances of obtaining “future credit accounts and loans.”
Get a Flexible Line of Credit for Your Small Business at First Bank
At First Bank, small businesses hold a special place in our hearts. Since 1935, when we opened our first branch in Troy, North Carolina, we’ve been known as a community bank that strives to assist local businesses get the financial support they need to achieve their goals.
We offer lines of credit* that provide you convenient and flexible access to cash when you need it. This financial plan option allows you to repay and reuse your credit line as needed and simplifies how you track your business expenses.
Find out more about how to apply for a small business line of credit with First Bank by visiting your local branch today!
*Loans subject to credit approval.
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Sources:
https://www.nytimes.com/ref/open/finance/OPEN-CREDIT-BASICS.html
http://www.bizbest.com/how-to-get-a-small-business-line-of-credit/
http://smallbusiness.chron.com/pros-cons-line-credit-small-business-1578.html
https://localfirstbank.com/business/business-loans/
