Entrepreneur Larry Ellison said, “I have had all the disadvantages required for success.” In the world of small business, it can sometimes seem like there are only disadvantages. One of them is the disadvantages of a Bank of America line of credit.
Among the disadvantages of being a small business owner is the difficulty in obtaining working business capital. This includes the disadvantages of a Bank of America line of credit. Luckily, one of the advantages is that now you have more options than ever before.
What Are the Disadvantages of a Bank of America Line of Credit?
When you are running a small business, cash flow is everything. Without it, you cannot make payroll, purchase supplies or handle emergencies. Therefore, many business owners seek a bank line of credit.
While this option may be easier to get than a business bank loan, there are numerous downsides. For example, there are the disadvantages of a Bank of America line of credit. It’s important to understand the pros and cons of this choice before you make a decision.
If you are a small business with sales under $6 million it is a waste of time applying for a Bank of America line of credit. They will want collateral, and they will ask for a lot of paperwork. Also, they will not give you a solid answer until you send in all financials. The line will also cost money to get in place and keep in place.
What You Should Know about a Bank of America Line of Credit
You should also be aware that there are many fees and charges you will have to pay. This is in addition to the money you withdraw from your line. It also significantly affects the affordability of the line.
They may also subject you to yearly reviews in order to keep your line open. In addition, they will severely limit the amount of money you are eligible for.
The Advantages of Other Options
Thankfully, for every disadvantage, there is typically a corresponding advantage. When it comes to a line of credit, that advantage can be found in alternative funding companies, like Financing Solutions (www.financingsolutionsnow.com).
At Financing Solutions, you can get short term business funding in the form of a line of credit quickly and easily. With their help, you can even out cash flow during slow periods, take advantage of business opportunities and make sure you can always meet payroll.
Most importantly, the line costs nothing until you use it. Also, you can pay the line off early without incurring early repayment fees. Then, the money becomes available for you to use again and again.
How to Turn Business Disadvantages into Advantages
Disadvantage: your business is small. As a result, you may think you cannot compete with the big dogs. On the contrary, you should use your size to your advantage by providing things the big companies can’t. This might include personalized customer service or unique perks for employees.
Handicap: you lack purchasing power. Big businesses save money by negotiating for lower prices. However, this benefit is not exclusively for them. You can also work with your vendors to lower costs. See if they will give you a break for paying in cash or paying early.
Drawback: it’s difficult to raise capital. This is one you can solve easily. All it takes is contacting Financing Solutions for immediate business funding.