What’s the Difference Between Business Financing and a Line of Credit
As a small business owner, you must have the capability to change what you can change, the power to let go of things you cannot change and the wisdom to know the difference. To make the right decisions, you first need to know the difference between business financing and a line of credit.
They say that fast business cash is not the answer to all your financial woes, but it does make a difference. To get it, you need the right source for small business funding. And to make the choice that is best for you, it takes understanding the difference between business financing and a line of credit.
Is There Really a Difference between Business Financing and a Line of Credit?
The difference between business financing and a line of credit is that business financing typically describes longer term financing over six months. These are the initiatives that you expect to take a long time, such as equipment purchases, expansion endeavors, and investment strategies.
In addition, a business bank loan is usually for a larger sum of money. This is because their purpose for your business tends to be larger. You receive the entire amount up front and the money can only be used for the purpose of the statement.
A line of credit (LOC) is for short term business financing. These are the problems that can range from a few days to a few months. For example, making payroll, paying bills even during a client check delay, or having to repair a piece of broken equipment are all types of temporary concerns that you should expect to solve quickly.
What’s the Difference between a Line of Credit at Financing Solutions vs. Other Companies?
At Financing Solutions (www.financingsolutionsnow.com), you don’t need perfect credit. In fact, they don’t even check your credit until after you receive a written offer. If you decide to move forward, then they check it. Even so, you can have less than a 700 score and still receive approval for short term financing. That’s perhaps the biggest difference between business financing and a line of credit.
Some alternative funding companies make you wait for your money, but not Financing Solutions. With their help, you can get same day business financing. For instance, once you complete the online questionnaire, you will receive a response within a few hours.
Another difference between business financing and their line of credit is that it is cost effective. In other words, it’s free to get. You pay nothing until you actually use it and withdraw funds. Best of all, once you repay the money, it becomes available to use again and again.
What is the Difference between a Good Company and a Great One?
Focus – great companies never lose sight of their goals. They are strategic and make sure that all initiatives relate back to their true objectives.
Leadership – business owners at good companies sometimes get in their own way. At great companies, they hire the right people and then trust them to get the job done. As a leader, you must delegate any tasks that don’t directly lead to growth.
Proactivity – great companies think ahead. They don’t wait until there is an emergency to get quick business financing. Instead, they turn to Financing Solutions to learn the difference between business financing and a line of credit and get a line of credit in place, just in case.