Line of Credit Approvals, Even with Business Losses

The inflationary environment that small business owners are encountering right now, means that their businesses are spending more for everything and this has a direct effect on credit approvals.

As a manufacturer, quick access to capital is crucial for smooth operations. You need to cover variable expenses like payroll, inventory, and equipment repairs when the need arises. An unsecured line of credit can provide that flexible working capital without the need for collateral.

As a manufacturer, you need access to capital to keep your business running smoothly. But should you get a term loan or line of credit? Understanding the key differences will help you determine the best financing option.

Loans vs. Credit Lines: Financing Options for Dental Practices

When dentists need access to financing, a line of credit can be an excellent solution. But should you opt for an unsecured or secured line? Here’s an overview of the key differences dentists should understand when weighing these options:

If you are a small business owner, chances are you didn’t go to school for business finance or economics. You own a business, that is what you do. If you are like a lot of our clients, so did your parents, and them before them. It runs in the blood. For a lot of small business owners, procuring the funds for growth is an important stepping stone on the path to a successful business. When you are looking to take this step, research is very important and it can be misleading finding truly helpful resources to guide and educate you about what’s available, how to obtain it, and key concepts to understand when navigating the world of small business funding. Even if you have a dedicated lender, who you have worked with and trusted in the past, it is beneficial to go out and seek your own knowledge in addition to what they have told you.

In the world of business financing, lines of credit are a popular tool in the construction industry for accessing funds to support growth, cover expenses, and seize opportunities. When it comes to lines of credit, two main options stand out: secured and unsecured.

From my experience over the years providing millions of dollars in credit facilities to construction companies across the United States, I know that there are few industries that can benefit more from affordable access to capital than construction.

To borrow money, or not to borrow money? It's an important question and, if we're being honest, there really isn't an easy answer. It totally depends on your unique situation.

Business owners experience a lot of relationships. Some of them have been very successful, while others were rough. There’s actually a famous saying in the business world regarding relationships and friends. People say, “You have no friends in business.” Today, I am here to tell you this is a complete lie and who you need to befriend. Their name is ‘Business Loan’ and they can be one of the greatest things to happen to your company.

Have you thought about applying for a small business line of credit? Maybe you’re in the process of sending in applications right now. Before you do anything else, read this blog post! We’ll discuss the six questions you need to answer for yourself before applying.

Here we talk about the pros and cons of business credit cards and how they compare to a business line of credit. It is my belief that a small business would be better served if they activated a line of credit to supplement their business credit card usage. A business credit card and a line of credit are both useful tools for a small business to help ease cash flow crunches and extend payment terms to vendors.

The interest rates for a revolving business line of credit are usually under 8% annual interest, so using this cash can be a great way to save interest on more expensive business debts. If your business is shouldering expensive credit card and/or merchant cash advance debt, a line of credit is a great way to save money on interest payments.

Not all banks are created equal. Some banks are more geared towards serving individuals with banking. Other banks are only commercial lenders. If you are looking to raise capital for your business, your success for actually getting bank financing starts with applying with the correct bank. We only work with ‘small business friendly’ banks and these banks specialize in securing our clients with lines of credit.

Usually, our first-time clients don’t know that their businesses qualify for a real bank line of credit. Why is this? Our bank partners are looking to issue more credit facilities and we help our clients get placed with the right bank. Generally, 90% of our pre-approved applicants end up receiving a business bank line of credit. We see that these reasons below are the most common as to why a business won’t even apply for a line of credit.

It all starts with applying to the right source. For example, let’s say that your business is highly creditworthy, but if you apply to a broker that has limited experience and a lack of resources, you could be wasting your time (and credit score). The broker may offer you a ridiculously high rate and just hope that you take it. Other companies may promise applicants with the ‘best rates’, and a multitude of ‘different programs’, but this should be a red flag.

Most businesses, when looking for capital, head on over to their local bank. It’s a logical move. The business has a deposit account at the bank, perhaps for many years. The chances that your bank will approve you will depend on certain factors about your business, BUT the main underlying factor is your bank's approval ratio.

A staggering 9 out of 10 Line of Credit Depot applicants have never applied for a line of credit, but they have had or currently have a merchant cash advance (MCA).

Whether you run a sole proprietorship or a large business with over 200 employees…the wrong financing can destroy your business. If the business is too overleveraged, it will most likely fail to meet creditor obligations and afford operational expenses

A business line of credit is a facility that gives a business the ability to draw from and payback to an available amount of pre-approved credit limit. Money drawn from the credit line is deposited as cash to your operational account and then the available credit left in the line is adjusted. As the credit line is paid back through monthly payments, the available amount of credit is increased.