Learn About Startup Business Lines of Credit: How it Works & Best Options
Summary of our guide to the best starting business credit lines
Business lines of credit allow companies to get money rapidly and have fewer qualifying limitations than traditional loan products. A business line of credit may also be appealing to established organizations looking to capitalize on new possibilities or bridge unanticipated cash flow shortages.
Borrowers with a business line of credit have access to a predetermined credit limit from which they can draw frequently as they repay, and they only pay for what they use. To be eligible for a line of credit, small business owners must have been in operation for at least six months and have a credit score of 600 or higher.
Rates and payback periods for a business line of credit vary greatly depending on the lender and are determined by the borrower’s eligibility. To get the greatest price on a business line of credit, borrow only what you need and shop around to compare rates and repayment terms from several lenders.
