Why an Unsecured Line of Credit Rate is Irrelevant
In life, they say you should not allow irrelevant people get to you. For business, you should not allow irrelevant issues, like an unsecured line of credit rate, steal your focus. You have more important matters to contend with.
What Makes an Unsecured Line of Credit Rate Unimportant
Often when business owners or nonprofit executive directors are looking for an unsecured line of credit, they are really shopping around for a good rate. However, there are a few things you should consider other than rate.
The first thing is that a line of credit is best for short term business financing. This makes it ideal for issues such as a shortfall in cash due to a late check from a customer or accounts receivable gaps.
Therefore, the amount of money that you actually pay is insignificant to the problem you are solving by having the line of credit in place. In other words, you often only need the line for a few days or weeks. As a result, you will likely repay the money before rate becomes a factor.
Okay, So an Unsecured Line of Credit Rate is Insignificant. Now what?
When it comes to any type of instant business financing, most people think of a bank first. You should be aware that all banks will charge a fee to set up your line. There may even be additional costs just to keep it in place yearly. Also, if you have no collateral to back up your line, a bank will not even consider your application.
Alternative finance companies like Financing Solutions (www.financingsolutionsnow.com) do not charge anything to have the line in place. You only pay when you use the line and the fees are very small.
If you have at least $300,000 in yearly revenue and a 650 or better credit score then alternative financing companies are probably your only option to begin with. Banks don’t typically deal with small businesses because they consider you too big a risk.
Irrelevant Versus Relevant Business Matters
As a small business owner, you must wear numerous hats. Unfortunately, handling the little things can often prevent you from dealing with issues that really matter. These tips may help you focus on what’s vital.
Loyalty: irrelevant, Performance: relevant
The length of time an employee has been at your company is less important than their ability to get the job done. This is what should determine awards, incentives and advancement.
Temporary drop in sales: irrelevant, Keeping up with trends: relevant
You must ensure that your company continues to provide what customers want. It’s crucial to not only give them what they want now but to anticipate what they will want in the future.
Unsecured line of credit rates: irrelevant, Finding the right source of fast business financing: relevant
Turn to Financing Solutions for instant business funding that will help your company stick around for the long term.