What’s better?
In the real world, it’s smart to learn about the differences between a business line of credit versus credit cards. Of course, everyone has seen certain movies where the business owner opens up several credit cards, maxes out on them and saves his business. However, there is always a fine line between fact and fiction.
You already know that making a sale is much easier when you have an introduction versus erratically trying to command an audience. It’s just as important to understand the benefits of a business line of credit versus credit cards for your company.
What You Should Know about Business Line of Credit versus Credit Cards
Nowadays, credit card companies know how many times you are applying because they will always run a personal credit check. This allows them to see the numerous instances of credit checks, meaning that it is rare that credit card companies will approve you for so many cards.
What you should also know is that business credit cards automatically come with personal guarantees. This means that even if your business fails, you are still personally liable for the payment. Additionally, a new credit card often has a very low limit, making it less than ideal for business uses.
Running a Professional Business
If your business or nonprofit is doing more than $300,000 per year in revenue, then you are past the startup phase. This means you should have line of credit as a backup plan.
When dealing with the ups and downs of uneven cash flow, you may think you are the only one suffering. You should know you are not alone. Running any type of business or nonprofit organizations means that you must deal with surprises expenses and late checks. There are also new opportunities that present themselves seemingly out of the blue.
The problem is that commercial banks don’t want to work with you until you have at least $5,000,000 in yearly revenue. They also expect you to have a credit score over 700 and 100 percent collateral to back up the line of credit.
Lastly, every business needs a line of credit because using a credit card isn’t the professional or the smartest way to go. More importantly, credit cards are extremely expensive.
Between a Business Line of Credit versus Credit Cards, Which is better?
A line of credit from Financing Solutions (www.financingsolutionsnow.com) is a much better option for businesses. They will wire funds to you the same day, the next day or anytime you like.
It takes only minutes to get a no obligation written quote. In most cases, your business will be eligible for an amount that is larger than what many credit card companies offer.
A Financing Solutions LOC costs nothing to set up or keep in place. Best of all, there are no charges until you use the line. And that’s not the only benefit. A line of credit is cheaper than a credit card for fast business money. Additionally, it’s easier to request and pay off funds.
They do not run any personal credit check until after you sign the offer letter indicating that you want to move forward. Their LOC is specifically designed for small businesses and nonprofits that have revenue over $300,000 per year.
Above all, you are not personally liable (unless you commit fraud) with a Financing Solutions line of credit. So take the next step. Apply today to find out how much small business financing you qualify for.
