A business line of credit — ready cash anytime you need it — is a marvelous and flexible financial tool to help a small business grow and keep you in control.
Establishing the revolving credit line is cheap, you only pay interest on what you borrow and you can use the line for almost anything.
- Tap your small business banker for a business line of credit.
Banks that serve small biz offer commercial lines of credit. Biggies like Wells Fargo offer small business credit lines up to $100,000 that you can apply for online, even if you’re not already a customer.
- Prepare the information you’ll need to borrow money.
To obtain a credit line, you may need to supply financial information about your business and/or yourself to potential lenders.
- Calculate your working capital needs.
For help figuring out how big a credit line you need, use this free online calculator.
- Look to non-banks like UPS and American Express.
UPS – a big name in small biz shipping – is also a major small business lender under its UPS Capital wing, offering loans and lines of credit. And the American Express “Open for Business” program offers business lines of credit.
Photo by woodsy.