You probably know all about a home equity line of credit and a revolving loan. However, many are confused about a revolving business line of credit.
There are numerous options when it comes to fast business funding for your company. It is vital to know the pros and cons of a revolving business line of credit and other methods to decide which is right for the unique needs of your small business.
The Difference between a Line of Credit and a Revolving Business Line of Credit
A revolving business line of credit is simply one unique type of line of credit. Both are a form of fast business financing where a lender loans a set amount of money to a business that they can draw from as they need funds. If no money is taken from the pot, nothing has to be repaid.
When you use the money from a revolving business line of credit, it works similar to a credit card. As long as you make the payments to repay the money, everything is fine. You may even gain favor with your lender to increase your limit. There is no specific amount that must be repaid each month, but until it is repaid, you will be charged interest and fees.
Each time you make payments, that money becomes available again and you can begin using it. You can continue this way as long as you do not go over your limit.
With a regular line of credit, everything is the same except that once you use funds from the account, they are gone. Of course, you still need to repay the money, but these payments do not get returned to the account and they cannot be used again. When the account is depleted, it is closed. In other words, it does not revolve.
Are There Alternatives to a Revolving Business Line of Credit?
Instead of dealing with the hassle and long term commitment of a regular or revolving business line of credit, you should seek other options. Your best choice is a business cash advance company, like Financing Solutions (www.fundmypayroll.com).
They can provide the short term business funding you need, when you need it. With Financing Solutions, you can apply for up to 150,000 dollars in funding in as little as 15 minutes.
You can repay the money in a few weeks or months, when your cash flow is stronger. And that’s it. On the other hand, if you find yourself short of cash for a second time several months later, you can apply again for quick business financing. Since you will already have a relationship with the company, the process will be even easier.
What is a Business Analysis and how can it Help You
Business analysis is a way to take a good, hard look at your business and find out how you can improve. Both internal and external factors are considered in order to discover what is best for you.
Some businesses use the MOST (mission, objective, strategies and tactics) path to discovery. Others rely on SWOT (strengths, weaknesses, opportunities and threats) to analyze the direction for the company. By answering questions about these areas, you can better determine what is best for your business.
One important kind of business analysis is how you can get access to instant business funding. With Financing Solutions, you can get the business funding that is right for you.
