A Guide to Help You Get a Business Line Of Credit for Your Startup
Initiating a startup business will need you to have the skill to tackle various problems like finding the right idea for business, the right business name, registering it, get a business line of credit, and so on.
In this particular post, we shall be talking about the problem which leads to the shutdown of the startup, sometimes even in first few months. We are pointing towards the funding of a business. Many people might be able to collect enough funds from personal sources of income, but the problem arises when sudden expenditures arise unexpectedly. We shall throw some light on the right sources for you to get the funding for your startup.
The Amount of Money You Should be raising
As per our opinion, you must try to maximize the credit you can get. Getting the right funds is all about putting in minimum input and gaining the maximum amount of output. The amount also depends on what is your strategy and what is your requirement according to that. It is not necessary to have a huge amount in all the cases. Getting a big amount is actually not very important if you are applying for a business loan. In the case of a business loan, you have to pay a fixed amount every month. This must be considered before you plan for a business loan. Though in the case of a business line of credit you have to pay only that amount which has been used by you. These two completely different sources of capital have their own advantages and disadvantages.
How to Get a Business Line Of Credit?
This option is really great, but you must know if you have just begun and do not generate enough revenues you have lesser chances of being funded. You will be considered by the lenders if your startup is generating revenue of minimum $25k and can go up to $60k. The repayment time of the loan ranges from a short duration of 6 months and goes high up to 25 months. The annual percentage rate or the APR is quite high though; it begins from a minimum of 14% and can go as high as 108%. People have frequently tried to know if they can still acquire a business line of credit with zero revenues. That is quite possible, but you have to fulfill the condition of having a strong report on personal credit. There are banks which are willing to fund you. To get these funds, it is suggested that the credit scores should be somewhere more than 690. Just as a precaution taken by the companies who are lending the amount, you will need to represent someone as your personal guarantor. The credit scores assure the bank about your credibility and the bank can stand as your personal guarantor, and on the basis of the scores itself, you will be given the credit.
You must keep this information with you that these are not secured business credit lines, so it should not be related to personal property. You will not need any bank statements, financials, income file, or even any upfront fees. When starting up with a business you must have enough capital to run the daily operations and other necessary expenses. To get a business line of credit you must build a good strategy to get the highest possible credit limit along with flexible terms and the best rates.
We at Midwest Corporate Credit are willing to help the new startups. To do this well we design the business line of credit, as per your business needs. Whether you are a startup or an established business entity, the business loans will always be accompanied by the high-interest rates. To get your credit funded, we approach the lenders who are accredited nationally. For more information contact us at 630-376-6063 or you can also email us at Info@MidwestCorporateCredit.com to learn more about the business loan applications and possible client possibilities. We offer hassle-free process and efficient approval to ensure that business owners can accomplish the dream of getting funding.