How to Get an Open Line of Credit for a Business or Nonprofit
When you open your eyes to new business possibilities, it will lead to opportunity just as an open line of credit can lead to success. See everything, even setbacks, as a new chance for profitability and your business can only move forward.
As a small business owner, finding financial freedom may seem like a pipe dream, but you can get closer to your goal through an open line of credit. It’s important to learn more about the various types of small business financing to decide which options are right for the unique needs of your business.
Different Ways to Finance a Business or Nonprofit
Factoring – this is not the best course of financing.
This option for small business funding involves pledging your invoices to another financing company. In exchange they will advance you up to 80 percent of that invoice.
The disadvantages are that the factor will call your client. This gives confirmation to your client that you are in fact doing business with a factor. In addition, the factor will want all payments to be sent to them.
Many companies considering factoring do not like the idea of their clients knowing that they need financial help. Also, factoring can be really expensive and causes you to lose control of your clients. And when you lose control of your clients, loss of your business won’t be far behind.
Business bank loans – these are almost impossible to obtain.
Banks are increasingly unfriendly to small businesses. This is because they don’t really understand your distinctive challenges and pressures.
For one thing, they expect you to have exceptional credit. They don’t seem to realize that most small business owners have to beg, borrow and bargain for everything they have to get their business off the ground. This typically takes a huge hit on your credit score.
They also make you fill out mountains of paperwork. What small business owner has time for that? You are too busy handling the daily operations of your business.
Also, you must be able to pledge 100 percent of collateral for any small business loan. The truth is that if you have all these factors, you probably don’t need a loan in the first place.
What is the Best Way to Get an Open Line of Credit?
Financing Solutions – for a better way, look no further. They don’t require collateral for their line of credit program.
At Financing Solutions (www.financingsolutionsnow.com), you can get a business line of credit up to $100,000. You can use this funding whenever you wish. Then, you can pay it off over time or all at once.
Unlike banks and factors, the owners of Financing Solutions understand small business…because they are small business owners themselves. As serial entrepreneurs, they know what it’s like to apply for a line of credit. After being turned down, kicked around and denied, they work to ensure other small business owners don’t have to go through that type of treatment.
A line of credit from Financing Solutions allows a business or nonprofit to get funds whenever they need it. Best of all, it’s a lot less expensive and gives you greater control. All these factors make getting an open line of credit an ideal option for your business.