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Business Line of Credit

A small business line of credit can help a company get through short term needs like unexpected expenses, purchase more inventory or even payroll. Lines of credit are a fantastic way to borrow funds because the business owner can draw money out as needed and only pay costs on used funds. 

Quick facts and requirements

Find out about our Business Line options today

Loan Amount

$5,000 – $250,000

Loan Term

6 mo. or 1 year terms

Interest Rate

8% – 24%

Time to Funds

Within 24hrs

Payment Frequency

Weekly or Monthly

Benefits

Interest is paid solely on funds drawn
Credit when you need it
Fits all business types and industries

Drawbacks

May require collateral
Interest rates are correlated with credit score
Personal guarantee required

Business Line Of Credit FAQs

What is a business line of credit?

A small business line of credit is a way for companies to increase their budget quickly to satisfy their growing needs. Business lines of credit are issued similar to a credit card except that funds are made available in your account as cash instead of credit. Having cash in a business bank account helps utilize funds in a unrestricted manner when making purchasing decisions. Lines of credit are great for short term needs.

Benefits of a business line of credit

We understand that you know your business better than anyone else, so at AMP Advance, we never try to tell you how you can use your funds. Lines revolve and refresh, so any payments on principal made by the small business get added back to the available balance of the credit line.

The flexibility, good rates, and lack of restrictions make it a good solution for any type of business, regardless of its industry. Any business with a history of paying debts can use a line of credit to get through temporary cash droughts.

Line of credit vs. credit card

While there are some similarities between a line of credit and a credit card, there are also some major and important differences. Business line of credit help you avoid credit card fees, and the rates are also much better for a business line of credit.

The line of credit helps save a business money because there are no fixed payments, and all interest is flexible and often based on the market. There is no way for a business to recover the funds it loses by starting a credit card, so the best course of action is to avoid those fees and high rates whenever possible.

How to get a business line of credit

At Amp Advance, we suggest that small business owners get a good understanding of how to acquire a business line of credit. This will make it far easier to ensure your company receives the best deal possible because you will know what to expect.

The most important factor that helps a small business qualify for a line of credit is its credit score. A small business should have a credit score of 560 or greater to apply for a business line of credit because it can be difficult to qualify with anything less.

A lender may also want to see an active business checking account, and some general financial information. Small business owners should be willing to provide answers about how long they have been operating and what kind of revenue they achieve.

Most lenders will ask general questions about why the business owner needs a line of credit and their plans to use it. A business’ line of credit will depend on multiple factors including its credit score, the amount of credit desired, and current interest rates.

One constant when it comes to business lines of credit is that the best opportunities come from trustworthy and reliable lenders. AMP Advance is a respected source for direct funding. Our reputation and relentless dedication to our business partners has made us leaders for small business financing.

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