What you did yesterday and what you will do tomorrow pales in comparison to what you do today and one of the actions you must take right now is to do a comparison of lines of credit. The future of your business depends on it.
Every business will encounter a situation when cash flow is low at the same time that you need to pay major expenses. One of the best solutions is getting a line of credit, but which do you choose? A comparison of lines of credit will help you decide.
Is There Any Comparison of Lines of Credit from Financing Solutions with Other Lenders
When seeking an unsecured business line of credit, it’s important to do your research. You must do a comparison of lines of credit, looking at factors such as terms, what it takes to be eligible and how fast you can get your money. Here is what you get from some alternative lenders, Financing Solutions (www.financingsolutionsnow.com).
Financing Solutions
- There is no need for a personal guarantee (except in the case of fraud)
- Require only a 620 or over credit score
- Two minute application
- Additional paperwork is easy to submit like bank statements
- Within hours you receive a written quote to consider
- Line can be set up in 2-3 days
- No charge to set up line and no charge until you actually use it
- There is no requirement to provide collateral
- Line is inexpensive when you do use it
- No fees if you repay the line within 48 hours
- There is only a minimum weekly payment once you start to use your line
- Can pay back line balance in full whenever you like
- Easy process when yearly renewal is due
- Owners of Financing Solutions are business owners. Their background is from building small businesses of their own, not from Wall Street/banks
- You can talk to the owners of Financing Solutions anytime you like
- They deal exclusively with small businesses and nonprofits so they really understand your business
What You Find in a Comparison of Lines of Credit from Commercial Banks
Commercial banks
- Insist on personal and business collateral to backup line
- Require a credit score of at least 700 or even higher
- Application is several pages long and takes 10-40 hours to fill out
- Might require audited or reviewed financials from your accountant
- Their lines take 60-120 days just for approval and another 30 days to be put in place
- A bankline is approved for 1-2 years
- There is a yearly charge to keep line in place, whether you use it or not
- They report the amount you receive to credit agencies, which then affects your personal credit score. This happens even if you never use all the money.
- If they have to determine the value of your collateral, such as your home or equipment, they may potentially charge you for this service
- Any business with less than $20 million in sales will require the owner to sign a personal guarantee. This means that even if your business fails, you are still personally responsible for repayment of the short term business loan
- In cases where you own a business with someone else or your spouse’s name is on the deed to your home, your spouse or business partner might have to sign this agreement as well
- Banks will charge interest monthly on what is outstanding on the line
- When it is time to renew, this is not always automatic. They will charge you another application fee.
- People at banks are come from administrative Wall Street or other financing type backgrounds
- Banks don’t like working with small businesses under $10 million in yearly sales.
The truth is that there is really only one thing that matters here: the success of your business. You can ensure that with immediate business funding from Financing Solutions.