Business Line of Credit

A small business line of credit can help a company get through unexpected expenses, purchase more inventory or materials, and expand quicker. Line of credit loans are a fantastic way to borrow funds because the business owner can draw money out as needed. A commercial line of credit provides financial freedom by providing unrestricted cash, so the business can easily fill its needs.

QUICK FACTS AND REQUIREMENTS

Loan Amount

$5,000-$250,000

Interest Rate

7.99% – 24%

Loan Term

6 months to 1 Year 

Payment Frequency

Weekly or Monthly

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Minimum Qualifications

  1. 6 months in business
  2. 620+ FICO
  3. Min. $200k annual sales
  4. No adult or vice industry business

Benefits & Drawbacks

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

Higher credit qualifications (620+ FICO)

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. Loan amounts can vary from $5,000 to $250,000 at an interest rate between 7.99% and 24%. It normally takes one or 3 days to get access to the funds, and the loan term reaches maturity at 6 months to 1 year. Borrowed money is repaid weekly or monthly.

How Does a Line of Credit Work?

A business line of credit operates somewhat similarly to a personal credit card. A company borrows money and pays for only what it uses. Interest only accrues on the funds that are pulled out of the line of credit, and there is no time limit on when those funds can be used.

This unrestricted flexibility extends to the use of the funds as well. A small business can use the money as needed. Interest rates are related to a business’ credit rating, and collateral may be required if a business lacks great credit, or requires a large loan. The line of credit is backed by a personal guarantee by the borrower.

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. Loans 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 that needs short term capital 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. Line of credits typically offer a larger dollar amount than a personal credit card, is unsecured and often is less expensive in terms of overall costs vs a personal credit card.

Lets look below for more comparisons:

 

  • Some credit cards will offer rewards programs that lines of credit do not, however they come with annual fees.
  • Line of credits costs are typically lower and have higher credit limits than credit cards.
  • If you need a large amount in cash, getting a cash advances with a credit card can get very expensive—with fees of up to 3% of the amount of cash you withdraw!

How to Get a 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. The applicant should have a credit score of 620 or greater to apply because it can be difficult to qualify with anything less.

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

The Best Business Line of Credit

If you have any further questions about how to establish a commercial line of credit, contact AMP Advance. Our team of honest, world-class professionals will get you the information and fair rates you need.

Once you understand what to expect from a line of credit, the next step is to start your application. We take pride in offering accessible web-based financing solutions and affordable options for small businesses.

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 based out of Miami. Our reputation and relentless dedication to our business partners has made us leaders for small business financing. Take action to see why we are a trusted source of credit for companies nationwide. Click below see if your small business can qualify.

Testimonial

You guys are doing a great job, keep it up! My monthly revenues have been on a consistent upward trend and we are up 20% from this point last year because of Amp Advance! Crazy right? We went from owning 3 ambulances and now 6 months later we are up to 9. When told they would increase my business, 10 times over, I was extremely skeptical. 6 months later I can proudly say they do what they say and they are more efficient than any other company we have ever worked with. Charles, Virginia

Thank you, Amp Advance! I wasn’t approved for traditional financing anywhere. They were extremely professional and helped give me the chance to pay off existing debts and have just just one low monthly payment! Cynthia, California

Even though we have great cash flow, our business showed a loss on paper after this most recent year. Traditionally, because of this I have been turned down everywhere I have gone. Amp Advance helped us when we thought there was no one else to provide us financing. Carlos, Miami

The process of any type of financing is extremely tedious and time consuming. The team at Amp Advance makes the process of financing quick, seamless, and pain free! Funds appeared in my account in a little more than 72 hours too, which was quite to my surprise. Dave, Illinois

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