The small business line of credit is a business term that allows a borrower to pay interest only for those funds that he or she uses. So, you don’t need to pay interest for money that you don’t have an immediate use for.
47% of small businesses in the USA have already established a line of a credit and managed their expenses, so they can succeed!
The pros of the small business line of credit are substantial
- Capital is available when you need it.
- Available for different business purposes.
- A great way to improve/build a credit score.
- Available for bad credit owners.
Plus, you only pay money for money that you draw.
If you need a business line of credit rates comparison, you can even do it independently. Just make a list of the reliable banks or other lending institutions and look for their rates.
There are small business line of credit rates of some American banks:
- BlueVine: 16% to 62%.
- FundBox: 15% to 59%.
- StreetShares: 9% to 40%.
- Kabbage: 24% to 99%.
- LendingClub: 8% to 35%.
To qualify, a borrower will need a minimum score of 600 and at least $75,000 in annual revenue and two years of business history.