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There’s no getting around it – a business line of credit (BLOC) can be a key element of your marketing strategy. Every small business needs to be able to adapt to change, especially in times of growth or uneven cash flow. When you need ready access to cash and flexible terms for repaying borrowed funds, a credit line can often be an ideal solution. A LOC can help you fix or replace equipment, improve your software and technology, invest in growing your team, and create new revenue streams. To maximize your chances of success, read on for advice on using this loan product the right way! But first, let’s go over the different types of a line of credit and how to qualify for one.
A BLOC can be a Swiss army knife for small business owners due to its easy use in almost any type of situation. With a BLOC, you only pay the principal and interest used, like a credit card. The big difference between a credit card and a LOC is that you can actually draw cash instead of using credit. So the question you need to next ask is do I need credit or cash. With a LOC it’s an opportunity to get a loan with either fixed or variable terms, and there are 2 types of lines available which we will discuss next. To qualify, you generally need good credit and enough revenue or collateral to secure the loan.
Many business owners think of lines of credit as a way to get quick cash flow. However, this isn’t always the case. Secured line of credit transactions are typically backed by collateral such as real estate or equipment, which take time to appraise and file liens to secure the asset after funding. Secured lines are generally used for large dollar loans over $100,000. While unsecured lines do not require any form of collateral also tend to be smaller approval amounts under $150,000. This makes them risky for lenders since they may not be able to get their money back if you can’t pay off the loan. Interest rates on unsecured loans can be much higher than those on secured loans, depending on your risk profile and credit score. It is essential for companies to compare all the pros and cons before taking out a line – it could easily wind up being one decision that ruins your business!
Obtaining a line of credit is an important step in expanding your biz. In order to get approved, you will need to meet certain criteria such as strong financial stability and a good credit score. Furthermore, you will also have to provide evidence of your entity’s current revenue and proof of ownership for any collateral if it’s secured. Traditional bank requirements are for applicants to have a 650+ FICO, 3 years in business, and show revenues of at minimum $100,000 annually. However, with AMP Advance through its private funds have much more lenient requirements. We can work with owners that have as low as a 550 FICO and as low as one year of operating time.
Now that we established different line of credit types and how to qualify, the next question should be what are some of the best ways to use it for your new line? Our answer normally is to do whatever has a short-term duration but also has a high revenue-generating opportunity. Below are some of the best examples to boost your business with a line of credit:
Marketing is essential for any company, and with a larger budget available, you can turn your attention toward more expensive leads (qualified prospects who have expressed an interest in your products or services). Get started by researching the best options for lead-generation online and then selecting the right ones for your business. Knowing where your money is going will help you maximize its potential for growth and success. So, whether you’re looking to build your brand awareness or drive more sales, investing in digital marketing will be useful in generating new clients or customers.
Rebuilding your website can be a great way to boost your marketing efforts, it is your digital business card. By optimizing your website and online presence, you can attract new customers or expand into new markets online. Make sure your website is easy to navigate and easy to find. You can also optimize your images for maximum visibility on search engines. Additionally, set up a Google Analytics account to measure how people are interacting with your site. Finally, add social media buttons or widgets to help spread the word.
If your business is heavily reliant on tools, large or small, to run then a great way to fix or replace equipment that’s not working right would be to use a business line of credit. Make sure to budget accordingly and don’t overspend – use the money saved from fixing/replacing equipment to re-invest back into your operations.
Technology is ever-changing, and so is the business world. That’s why it’s important to keep up with the latest trends and update your systems to remain competitive. If you run a restaurant, perhaps upgrading to a new POS system will help manage orders and take payments more efficiently. By upgrading your software and technology, you’ll be able to streamline processes, increase efficiency, and boost sales. In addition to this, upgrading your systems will also help you attract new customers and stay ahead of the competition. So don’t wait any longer – make the switch to better technology today!
The sky’s the limit when you have the right team assembled. A line of credit can help you invest in growing your team, which will boost your marketing efforts. It can also help reduce cash flow concerns and access funds when you need them the most for payroll. The best time to apply for a business line of credit is before you experience any growth or financial instability in your company. Having an available loan will give you the confidence to take on more ambitious marketing goals.
Boost your marketing efforts and create new revenue streams by offering new products or marketing in new territories. By using a quick and flexible line of credit, you’ll be able to grow your business faster and increase profits!
When you are ready to take your company to the next level, a business line of credit can be a powerful tool. By having a line that is flexible and easy to use, you can boost your marketing efforts and improve your cash flow at the same time. Plus, by investing in growing your team and expanding your empire, you’re sure to reach your business goals. Make sure to check out our website for more information on how a BLOC can help you grow!