Lines of Credit
Being a business owner, there are many unexpected expenses you may encounter. Sometimes you need access to cash without having to dip into your hard-earned revenue. While CorFunding offers multiple funding solutions, sometimes our clients are specifically in need of a business line of credit.
HOW A LINE OF CREDIT CAN HELP
A line of credit is flexible, revolving, short-term capital that aids in providing funding solutions for your business. Think of it as a credit card strictly for the business, the only difference being you can access cash.
Not like a typical cash advance or term loan, a line of credit allows you to draw funds directly into your business bank account every time you pull. This line is available anytime throughout the duration of your term. Interest is only paid on what you draw and you’ll have the option of paying your balance earlier at any time with no penalty. There is no set rule on when you must draw so you can draw funds once a month, once a year, or even once a day. Payments are made weekly or monthly and aid in building your business credit. You’ll have access to your line 24/7.
Line of credit eligibility is based on annual revenue, time in business, and personal credit. We require a minimum gross annual revenue of $120,000 per year for all businesses and at least 1 year in business. Personal credit scores must not fall short of 600 in order to qualify for a business line of credit.
HOW DO I USE IT?
A business line of credit can be an extremely beneficial tool for business owners. Use your line of credit for various purposes including marketing, remodeling, gaps in cash flow or sales due to seasonality, unexpected expenses, inventory, and much more. A business line of credit is one of the most convenient types of financing CorFunding offers.