Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Small Business Line of Credit


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

  1. 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.”
  2. 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.
  3. 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 has strived 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 filling out this online form today!


*Loans subject to credit approval.

———
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/

Trending Topics

Budgeting 101: Personal Budget Categories

When it comes to creating a personal budget, it can feel like there are a million financial categories to consider. In order to create a successful budget, everything should be accounted…

Is It Possible to Get a Mortgage Refinanced with No Closing Costs?

When it comes to refinancing a mortgage, you need to spend money to save money. Closing costs can amount to thousands of dollars, depending on the home loan. This is…

Mortgage Rates 101: Information You Should Know

Acquiring information about mortgage rates is a vital step in the home buying process. Mortgage rates vary based on several factors, such as the amount and type of your loan…

Refinance Your Mortgage with These 5 Tips

Over time, the mortgage market fluctuates and creates new opportunities for homeowners to revise the terms of their mortgage. This is known as refinancing. When refinanced, a mortgage can include lower…

Credit Card Processing for Businesses

If you are a business owner, you probably know that accepting multiple forms of payment (cash, debit, credit, and checks) is important. But you may not know just how essential…

Calculate Your Monthly Mortgage Loan Payment (with Taxes and Insurance)

A mortgage loan calculator with taxes and insurance can help prospective homeowners prepare for the financial responsibility of owning a home. Purchasing a home may be one of the biggest…

30-Year Mortgage Rate Forecast Tips

A great way to lock in the best mortgage interest rate is to shop around. By learning how to read a 30-year mortgage rate forecast, homeowners can pinpoint an ideal…

Home Refinance Rates from First Bank

With the country’s average interest rates for 30-year fixed mortgage rates currently at their lowest, now is a good time to consider refinancing your home. Low home refinance rates mean…

Five Reasons to Refinance Your Mortgage

Banking professionals suggest mortgage refinancing when homeowners want to replace their current loan with a new one, often to reduce monthly payments or lower interest rates. With a mortgage refinance,…

Save Money with This Refinance Calculator for Home Mortgages

When mortgage interest rates are low, homeowners should compare their current mortgage terms with the option of refinancing. By locking in the right rate, homeowners can take advantage of significant…