Sometimes a Line of Credit is Better than a Business Term Loan
Occasionally, it is the smallest choices that can have the biggest impact on your business. For example, sometimes choosing a line of credit (LOC) will serve you better than a business term loan.
As a small business owner, you can become so busy with the daily task of keeping your company above water that you don’t have time to thoroughly research your options for instant business funding. Therefore, you may select the option that seems easiest instead of the one that is best, such as applying for a business term loan even though a line of credit will be better in the long run.
Why a Line of Credit May be better than a Business Term Loan
If you are looking for a business term loan you might want to consider setting up a business line of credit instead. A line of credit can also work alongside an already existing short term business loan.
It typically takes a very long time to get approved for a term loan. Banks make you fill out lengthy applications, then wait weeks or months to give you an answer.
Additionally, traditional banks lock you into long term contracts, meaning it will take you several years to repay the loan, as you incur more interest and fees along the way. They also require tons of collateral and an excellent credit score to even consider giving you an instant business loan.
Where Can You Turn for a Line of Credit?
Normally, businesses have enough money to pay off a line of credit in a few months, saving you a lot of money. Consequently, you don’t need to be stuck with a lender that makes you wait, jump through hoops or sign your life away with a lengthy contract.
A line of credit from Financing Solutions (www.financingsolutionsnow.com) comes with a very easy approval process. You can get started with just a 15 minute phone call and receive an answer in about an hour.
A Financing Solutions LOC will give you a credit line up to $150,000 that you can use at any time and pay it back all at once or a little at a time. More importantly, there is no charge until you actually use the line. When you pay it back you are only paying back principal verses a term loan which requires you to pay it back in full with interest.
Sometimes, the Best Way to Improve Your Business Is…
To step back and see the big picture – we often get so caught up in daily tasks such as making payroll, paying bills and finding sources for capital that we forget about growth. Learn to delegate the small stuff so you can focus on moving your business forward.
To recognize when something is not working and not be afraid to change it – many companies make the mistake of sticking with a product or marketing tactic only because it’s what they’ve always done. Get rid of the low hanging fruit that’s starting to rot so you can improve what is working and make your business blossom.
To realize that Financing Solutions is the place to turn for fast business funding – they offer a no-hassle, quick process for getting the cash you need to make your business thrive.