Business line of credit For A Start Up

April 1, 2010 - PRLog -- So you have a small business start up, how do you get a business line of credit with no assets or track record of your success? Just about anywhere you decide to go the same questions will be asked, how long have you been in business, what assets you have, how good is your personal credit, and what kind of cash flow do you have. Although you may think that based on your situation a small business line of credit would be impossible to obtain, you may be surprised when you are offered one.

Banks and lending institutions are sometimes more willing to lend you money through a business line of credit verses a small business loan. typically you credit line will start out on the small side, how ever when you show the lending institution that you are on time with the payments, you can ask to have the available credit raised. you can find a lender here
http://www.ibank.com/small_business_loans/line_of_credit_under_$100K.cfm

Why should you get a business line of credit?

There are many reasons why you should get a business line of credit. The following is a short list and if you give it some thought you will be able to add to the benefits of a business line of credit.

1.   Establish yourself as a credit worthy small business. You never know when you may need to secure financing.

2.   A credit line can help you hire the people that you need to expand. Many times there is a period with new employees before they start to bring in revenue.

3.   You may run into opportunities that you can ask on without worrying about money. You maybe invited to a conference or find a great deal on equipment that you can take advantage of when you have available credit.

4.   Help you with your business credit. When you are given a loan from a lending institution other lenders are more willing to lend to you. They assume that you are a credit worth small business.

5.   Peace of mind. You will sleep better at night knowing you have some back up cash available just in case.

6.   You don’t have to use it if you don’t need it. Like a home equity line of credit, it is revolving. You can pay it down when you land that big contract, or you can use it for seasonal fluctuations in you business. http://www.ibank.com/small_business_loans/retail_merchant... To find out if you can get a merchant cash advance.

One of the first things a small business owner should do during the formation stage is contact a lender and requests the eligibility requirements for a credit line. Make sure that you have set up you business from the start in order to easily qualify for loans and credit lines. http://www.sbaloans-123.com/sba-504-loan

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Learn About SBA Loans and how to get SBA funding and How to get SBA financing for your small business.