What is the Maximum Business Line of Credit You Can Get
Author, motivational speaker and salesman Zig Ziglar said, “Success is the maximum utilization of the ability that you have.” To achieve this success, you may need to know the maximum business line of credit you can get.
Running a small business is hard. You want to be sure you are doing all you can for your company and getting everything you deserve. That’s why it’s vital to know the maximum business line of credit that’s available to you.
How Can You Find Out the Maximum Business Line of Credit Available?
The max a business can get in a line of credit is based on a variety of factors. Nowadays, there are two sources for a LOC, a bank and an alternative funding company.
If your small business has under $6 million in sales then you can almost forget getting a LOC from a bank. Banks are just not lending unless you have lots of collateral to back up the line.
For businesses that back up their fast business line of credit with commercial real estate or other assets, there are millions of dollars available. Everyone else is stuck with a home equity line of credit, where you have to put your residence and business at risk.
Where to Go to Get the Maximum Business Line of Credit
Small businesses are now being approved by working with alternative lenders like Financing Solutions (www.financingsolutionsnow.com). They will approve your line of credit based on your sales, your gross profit margins, your personal credit score and a variety of other factors.
The nice thing about alternative funding companies like Financing Solutions is that getting a line in place is relatively easy. They don’t charge anything until you use the line.
In addition, they offer flexible repayment options, allowing you to repay the money as soon as your cash flow improves, without penalties. This kind of unsecured business financing is beneficial to even out cash flow, buy inventory or handle emergencies.
How to Get Maximum Value for Your Business
Knowing the value of your business lets you know the potential of your business. Having the right information allows you to make more informed decisions about the future of your company. It can also be very helpful for tax or estate planning, buyouts and transitioning ownership.
To determine the current value of your business, you must look at numerous factors. Evaluating at least three years of financial data, industry specific data and industry benchmarks is essential.
There is also the story behind the numbers. Things like value drivers and the experiences of the owner(s) should be considered when deciding what your business is worth.
Increasing your cash flow is also one way to enhance the value of your business. You can get help with this from Financing Solutions. They will give you the quick business funding necessary to keep more money in your pocket.