One of the available financial sources for your business is a line of credit. This option allows you to cover cash shortage quickly and easily. In case you can return a full borrowed amount, you are not required to cover any interests. If you decide to apply for a line of credit, your business needs to meet the following requirements:
- Bank account – a lender will examine your business account and indicate monthly cash flow. This check will show the profitability of your business and if it has enough cash flow to return the money.
- Financial history – the information about your business for the last 2 years or even more. Bank statements or income tax return are enough to prove your business position.
- Credit report – your business has its credit score as well. It’s required for your business to present a score of 75 of possible 100.
Before applying for a line of credit, make sure your business documentation is alright. Here you can check how you can get a business line of credit.