Helping you with all your Business Line of Credit Needs
A business line of credit is a mix of a business loan and a credit card. It provides funds for a business which can be used for general expenses (business related) but the disbursement is not necessarily done on a lump sum basis. Therefore, a business owner borrows only the amount that is needed at any given time and pays interest on the same.
Just like a credit card, the amount of money that can be borrowed and the payments are flexible. Also, just like a credit card, the lender can set a limit on the amount a business can borrow.
Business lines of credit are flexible compared to other types of business loans. This gives the borrower the freedom to use a business line of credit loan in Canada as a safety net for times when the business is slow or when the business suddenly spikes and the business needs an instant increase in funding.
Cities and Regions We Serve
Our team serves clients from all across Canada and the USA.
- Western Pennsylvania
- Pittsburgh Pennsylvania
- All Across The USA
- Toronto and the GTA
- British Columbia
- All across Canada
Getting a Business Line of Credit
In order to get a business line of credit, lenders usually require that the borrower has a particular monthly revenue along with collateral in terms of short-term assets. The borrower will also need to show that there were no recent bankruptcies, tax lien or foreclosure.
Priority lending helps you build a business line of credit that you can use when needed. When you apply with us, we will review your business profile, credit profile and other details along with the amount of money you require. We will match you with a bank or alternative lender that we have partnered with to help you acquire the funds as soon as possible.
Business Line of Credit Frequently Asked Questions...
What do I need to qualify?
- Minimum Time in Operation: 6 months
- Minimum Revenue: $50,000 annually
The myths about a business line of credit
"A line of credit is easy to get"
Wrong. The days when a bank would lend to small businesses on the strength of a good business plan are gone. While private investors may still take on that kind of risk, financial institutions do not. It would be much more accurate to say that ‘Lines of credit are relatively easy to get – if you have collateral’. No bank or large financial institution will give you a line of credit unless you have some easily liquidatable asset such as real estate. In addition, your credit score and business cash flow will be taken in to account. Finally, most lenders will require that you have been in business for at least 2 years.
Personal Lines of Credit
If you’re starting a business, or your business just doesn’t qualify, a personal line of credit can be the answer when small sums of money are needed. In these cases, a business owner will obtain a home equity line of credit (HELOC) which is secured against their home. If your credit is very good you may qualify for an ‘unsecured’ line of credit, although ‘unsecured’ is misleading. In the event of default due to a failure of the business, you are still personally on the hook for the money you have borrowed and the lender can, and will, sue you to recover their money.
What are some of the Benefits?
There are a number of different types of Equipment Loan available:
- Lukewarm credit OK
- A good credit building tool
- Only pay interest on the funds you use
- Quick and convenient access to cash
- Can be used for any purpose
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