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How to get a business line of credit in 6 steps

Landing a line of credit can be game-changing for small businesses looking to grow with the help from some extra capital. 

Why?

Unlike conventional loans, a business line of credit allows small business owners to withdraw funds on an as-needed basis, providing an alternative to the lump-sum payments that are common in other small business loans.

A business line of credit is a flexible option that helps businesses on their terms – if and when issues creep in.

  • Cash flow complications
  • Inventory expenses
  • Unexpected financial needs

TL;DR

This 10-minute article outlines:

  • How a business line of credit helps small businesses
  • How to get a business line of credit in 6 simple steps

How business credit lines help small businesses 

The beauty of a business line of credit lies in the versatility it provides.

✔️ Small business owners can withdraw funds as needed.

✔️ Interest is only applied to the amount actually borrowed.

✔️ Capital can be pulled continually – as long as timely payments are being made.

✔️ Funds are repaid over a period of time.

Business line of credit payment conditions are cost-effective and provide a level of flexibility most small business owners require.

6 simple steps to secure a business line of credit

Getting a business line of credit can happen in six quick steps: 

Determine the amount of funding you need

  • Assess the amount of credit required for your small business. 
  • Aim for a realistic limit, and don’t hesitate to request an increase if necessary (based on your business’s growth).

Compare lenders

  • Explore traditional banks, credit unions, online lenders, and more. Some small business loan providers will let you explore several lending options in one place. 
  • Compare credit limits, repayment terms, minimum requirements, and APR ranges to make an informed decision based on your business needs.
See also  15 Tips to Reduce Your Total Loan Cost

See if you’re eligible

  • Pay attention to your credit history and business revenue as well as how long you’ve been in business to understand your eligibility. 
  • Each lender might have different requirements, so do your research and weigh your options.

Gather the necessary materials 

  • Prepare the required documents. This might include tax returns, business licenses, and financial statements.
    • Tip: Application clarity and completeness can expedite the approval timeline!

Apply for funding

  • Once everything is in order, submit your application! 
  • You might need to provide follow-up documentation to your lender; make sure you’re paying close attention and promptly addressing their request.

Receive your loan – and get to work!

  • Your loan approval can take anywhere from minutes to days.
  • Once you receive your loan, put your plan into action and utilize your newfound funding!

Securing a business line of credit is a strategic move for any small business owner. 

✔️Navigate the application process

✔️Choose the right lender 

✔️Unlock the financial support your business needs to thrive

Get a business line of credit with 1West

We’re here to help you get your business off the ground with the funding it deserves.

Explore business credit lines with 1West and find funding in as little as 24 hours. Follow three easy steps to get started:

  1. Enter your business details
    We’ll take a look at your business details, financial history, and personal information to make sure you qualify.
  2. See your offers
    Compare offers from our network of 50+ approved lenders. We can guide you to make sure you pick the best one for you.
  3. Accept and get funding
    Decide which loan option is best for your business. Accept and receive funding in minutes, not months.
See also  What to do after you get approved for business financing

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