What Do You Need for a Line of Credit (LOC)
For your business to succeed, you need three things: determination, the right people around you and a quick supply of cash. The last can be set up with a business line of credit (LOC). But first, you need to know how to get one.
Your business is a unique organization that needs your constant attention for it to grow and thrive. There is also a great need for a line of credit (LOC) to allow you to get things done. Where you go is perhaps more important than how you apply.
Is it Easy to Get a Line of Credit from Financing Solutions?
When applying for a LOC with Financing Solutions (www.financingsolutionsnow.com) you do not need to send in or fill out any paperwork to get an offer letter. The first thing you need to do is answer 10 simple questions in our application. Then an email offer letter will be sent out to you showing you how much you are approved for. They also explain what the line will cost once you use it.
Financing Solutions does not charge anything for applying. You pay nothing until you actually use the line. Once you receive the offer letter, if you plan to move forward, they will ask for some backup documentation. This may include bank statements, tax returns, and a few other easy to get documents.
At this point they will then run credit check. If it all matches up against the 10 questions from the application then they will issue you your line. The line will stay in place for 12 months and you can renew it yearly.
In general, all of the above happens in about 3 days. You will have the money in your account to use immediately for things like making payroll, purchasing supplies or building working capital.
How Do You Get a Line of Credit from a Bank?
A traditional bank on the other hand will ask you to fill out a rather lengthy application that will take 10-20 hours for you to complete. It will then ask for a lot of documentation. They might even ask for reviewed or audit financials from an accountant.
All banks will require some sort of collateral to back up the LOC. This may include equity in your home, stocks or other assets. In general a bank LOC will take 3-6 long months to get in place. In addition, there will be yearly costs whether you use the line or not.
How to Meet Your Long Term Business Needs
You small business may not be small forever. It’s time to make plans for your potential growth in the future.
One thing you must do is invest in the proper technology. While you may not have the funds or the need to hire new staff yet, you can begin to work smarter (not harder) with a better technological infrastructure.
You should also pay attention to trends. This will tell you where your industry is going and how you can get there first.
The most essential thing you need is a line of credit. Trust Financing Solutions to handle all your small business funding needs.