Business/Commercial Lines of Credit.

A Small Business Line of Credit gives businesses flexibility and access to cash as needed.

This form of financing allows a business to draw cash from its total credit limit for any business purpose only paying interest on what the business uses.

As a (RLC) Revolving Line of Credit, more financing becomes available as the business pays down its balance.

Some lenders report to a business credit bureau, when so the timely and consistent loan payments of a business will work toward increasing its credit score.

This also creates credibility and creditworthiness with their lender. This could also help the business secure better loan terms in the future.

Interest rates for Business and Commercial Lines of Credit often range from 5% to 60%, depending on the credit score of a business.

If collateral is required it may be equipment, real estate property, or the strong (AR) Accounts Receivables of a business.

These all serve as an extra layer of protection for the lender against any defaults on the loan.

When offering an asset to secure business and commercial financing, the owner/owners of the business reduce the level of risk for their lender, and thus in turn decrease the interest rate they will receive on their loan.

Mandatory Loan Requirement: 600-650 FICO Score or higher.

A business must have been in business for no less than two years.

Collateral may not be required.

Business profitability may not be required.

*Both subject to the lender

Just as small business loans, an unsecured line of credit provides businesses with the access to the funds they need. These funds can be used to address any business expenses that arise for the operation of the business.

Such a reason could be to open a new business line of credit thereby gaining access to short-term financing.

All businesses need access to financing to run their daily operations, because at times there may not be enough working capital available when a business needs it.                                    

The growing demands for a business’ services can require more working capital as also payroll expenses, expanding new branch locations or purchasing new inventory.

When any of these needs should arise or even when a business finds itself only needing funds for a new marketing campaign, then this is when the business can benefit from a Business/Commercial Line of Credit.

A commercial line of credit is another term for a Business Line of Credit even though they are the same.

A commercial Line of Credit provides funds pooled together that a business owner/owners borrow from as these funds become needed.         

Businesses only pay interest on what they owe, yet they may only use a Commercial Line of Credit for any expenses related to the business itself, these funds are never to be used for the personal expenses of the owner/owners of the business.

A business qualifies for the best loan terms when it is in good financial standing with no financial problems with its monthly cash flow.

A Business/Commercial Line of Credit allows businesses to borrow funds up to the amount of their working capital.

This is calculated by subtracting a business’ current liabilities from its assets.

Just as it would be with other lines of credit, any interest applied is charged only on the amount of the funds borrowed.                      

This provides an (RLC) Revolving Line of Credit that a business may decide to keep reusing and repaying as often as it should choose.

A Commercial Line of Credit is the right choice when a business has begun to have larger financial needs due to an increase in its working capital needs.

First A Business Owner/Owners Should Decide How Much Funding They Need.

Then they should have all their necessary documents for the formal application process which will usually include the following:

  • Personal and business tax returns
  • Business licenses
  • Articles of incorporation
  • Personal and business bank statements
  • Profit and loss statements
  • Financial statements
  • Business plan
  • Building lease

The lender will ask for:

  • Owner/Owners names and addresses
  • Business name and address
  • Social Security number (SSN) of Owner/Owners
  • Desired amount loan amount
  • Purpose of loan
  • Business Tax ID
  • Business annual revenue

For Business/Commercial Lines of Credit Lenders use no hard credit pulls, only soft pulls when they check for credit eligibility, thus doing this without affecting any credit score.

A business may withdraw what it needs, when it needs it, a business will only be charged interest on the funds it draws from its (LOL) Line of Credit.

Just as it would be with other lines of credit, any interest applied is charged only on the amount of the funds borrowed.

A business may withdraw what it needs, when it needs it, a business will only be charged interest on the funds it draws from its (LOL) Line of Credit.

Just as small business loans, an unsecured line of credit provides businesses with the access to the funds they need. These funds can be used to address any business expenses that arise for the operation of the business.

Such a reason could be to open a new business line of credit there by gaining access to short-term financing.

All businesses need access to financing to run their daily operations, yet at times there may not be enough working capital available when a business needs it. The growing demands for a business’ services can require more working capital as also payroll expenses, expanding new branch locations or purchasing new inventory.

When any of these needs should arise or even when a business finds itself only needing funds for a new marketing campaign, then this is when the business can benefit from a Business/Commercial Line of Credit.

A commercial line of credit is another term for a Business Line of Credit even though they are the same. A Commercial Line of Credit provides funds pooled together that a business owner/owners borrow from as these funds become needed. Businesses only pay interest on what they owe, yet they can only use a Commercial Line of Credit for any expenses related to the business itself, these funds are never to be used for the personal expenses of the owner/owners of the business.

*Remember a business qualifies for the best loan terms when it is in good financial standing with no financial problems with its monthly cash flow.

This provides a Revolving Line of Credit a business may decide to keep reusing and repaying as often as it should choose.

A business may withdraw what it needs, when it needs it.  

A business will only be charged interest on the funds it draws from its (LOL)

For a  Business/Commercial Line of Credit Call Now, Today!          

SECA Funding Company (800) 413-5167 Ext. 9

Skip to content