Why Every Company Should Have a Line of Credit
Every business owner must decide his or her own fate. Making the right choices about fast business financing will determine whether your company succeeds or fails. That’s why every company should have a line of credit.
You face important decisions every day. Operational decisions like selecting the right suppliers and manpower choices such as what your benefit structure will be are just a few of the daily judgments you need to make. Perhaps the most important is what type of small business funding you should get. You may find it helpful to know that many business experts recommend that a line of credit is something every company should have.
Reasons that Every Company Should Have a Line of Credit
Any business owner that has come through the 2008 great recession or any growth cycle for that matter knows that having an emergency backup plan is one of the smarter things you can do. Another smart move is choosing the best company to help you. Numerous small businesses have found success by getting a line of credit from a business cash advance company, like Financing Solutions (www.financingsolutionsnow.com).
Because a Financing Solutions line of credit (LOC) costs nothing to set up and nothing until you use it, this makes it the perfect backup plan. The LOC takes very little times to set up and is very inexpensive when you do decide to draw from it.
Best of all, there are no hidden fees, long applications or confusing terms. They make it easy to get, maintain and reapply for their short term business funding options.
Why Every Line of Credit is not the same
To meet working capital needs, every company should have a line of credit. However, it’s vital to note that they are not all created equal. Here’s why.
Trying to get a bank line of credit is almost impossible. Banks expect you to have tons of collateral. They also require an excellent credit score and successful business financial history. Therefore, most small businesses just can’t qualify.
Some lenders are difficult to work with. They make you complete lengthy applications and it could still be several weeks before you see any money. In addition, they can call in your line of credit at any time. This means that they will ask for the entire balance to be paid in full. While it is rare and may happen in cases of default, you don’t want to ever find yourself in that position.
It’s tough to get an unsecured line of credit. Banks, as well as some alternative financing companies, insist that you secure your line of credit with assets. Typically, you have to pledge equipment, property, or even your personal residence to get their business line of credit. This puts you in danger of losing both your business and the asset.
A line of credit from Financing Solutions is different and better. You can avoid all the hassles of traditional immediate business funding by turning to them first. With their help, you can solve your financial woes and have your money in 48 hours or less.