Getting a Business Line of Credit in Springfield, IL
A business line of credit is one of the most valuable financial tools that helps business owners approach financing in strategic and meaningful ways. If you are in need of financing, a line of credit can help you capture the opportunities ahead of you, meet your short-term capital needs or make other investments to build a thriving business.
With a business line of credit in Springfield, IL, you can take a strategic approach to making sure that your business has access to the resources you require to meet your day-to-day working capital needs and fill other short-term necessities. You can qualify for borrowed capital easily with short-term and longer-term financing to fuel growth and other profit-generating projects.
Applying is free and will not affect your credit score.
Why Should You Consider Getting A Business Line Of Credit?
Getting a business line of credit means obtaining a revolving loan that grants you direct access to a fixed amount of capital, which you can use when you need to meet your short-term business needs. Also known as LOC, this solution is a very common way for business owners to finance their short-term working capital requirements, including:
- Purchasing inventory
- Repairing or replacing their equipment
- Financing a new marketing campaign
- Bridging a cash flow gap
There are two main types of business line of credit options: a secured and an unsecured line of credit. While the secure line of credit requires the business to pledge assets as collateral to secure the line, the unsecured does not require such collateral. However, the latter is usually reserved for businesses with stronger credit profiles and requires a general lien and personal guarantee.
A Safety Net For Your Business
As businesses grow, their financing needs evolve and often become more complex. As a small business owner, you probably make all the financial decisions for your company. However, these decisions can be tough if you don’t have access to financing.
A line of credit in Springfield, IL can act as a safety net for your business. Whether you are facing an unexpected event and you need financing or want to capture an opportunity to grow your business but need to invest more...It is a financing option that lets you take advantage of opportunities as they arise.
With a solution like this, you can run your business with less stress and have access to funds when you need them most. Revolving, simple to use, and very easy to understand, it is a solution that lets you pay it off to replenish it, and use it again when certain needs arise.
The Benefits Of A Business Line Of Credit
Flexible access is the first and foremost benefit of a business line of credit. Once you are approved for a line of credit, you can draw your funds whenever you need them, use them for whatever reasons you want, and pay interest only on the amount that you have withdrawn. Unlike a term loan, funds from a line of credit are revolving, which means that as you pay them back, you can use the funds again.
Paying interest only on the portion used
is second on our list. With a business line of credit, you are charged only on the part you use. For example, if you have $60,000 and use only $20,000, you will only have to pay interest on the $20,000 that you used. Some lenders, however, charge fees to keep your account open or charge “inactivity” and other fees, so it is always good to understand and inquire about any fees before committing.
A good relationship with the lender
can also help you increase your line of credit or explore other solutions in the future. The best way to do this is by using your credit responsibly and being disciplined with your payments.
With a business line of credit in Springfield, IL, you will likely develop
a better business credit rating. If your lender reports back to the credit bureaus, this can benefit you by raising the credit rating of your business, which would be of big value to you in the future.
Lastly, a business line of credit is a financing option that offers
lower interest fees as well as lower additional fees
compared to other financing solutions. Operating just like a credit card (with a revolving balance), this solution lets you use your loan wisely. However, you should always look at the terms associated with it before deciding.
What are the fees?
- Origination fees: These are calculated as a percentage of your credit limit. For instance, if you have $100,000 as a credit limit and the fee is 2.5%, you will owe $2,500 at the time of opening your account.
- Monthly or annual access/maintenance fees: Collected monthly or annually, these are either flat fees or percentages of your credit limit.
- Draw fees: A percentage paid on the amount of money that you use.
- Additional fees: There might be additional fees based on many details. Check with your advisor to see whether that’s your case.
As you can see, there can be a few or more fees associated with a line of credit. Make sure to be familiar and understand the terms and conditions before applying. For more information call us today.
When To Apply For A Business Line Of Credit?
You can apply for a line of credit in Springfield, IL at any time. At Business Loans Springfield, we work with all types of small businesses from Illinois to advise them on the best solution for their needs.
Applying for your line of credit is easy, and you will receive our response within 24 hours. You could have access to your funds in 1 to 2 business days. If you are interested in other solutions besides line of credit, you can reach out to our dedicated advisors and get professional assistance with your financing needs.