4 Ways a Business Line of Credit Can Make or Break Your Business

Last Updated on October 30, 2017

The world of business advice has a tendency to be melodramatic at times. Indeed, it’s not uncommon to flip (or click) to an article that warns about the latest problem that is gearing up to send your business straight to the dustbin of history.  

5 ways a business line of credit can make or break your business

Get the Facts on Business Credit Lines

There are times when sounding the alarm bell is warranted, because your business’s survival could depend on it. And getting the facts about a business line of credit — and steering clear of myths and misunderstandings — qualifies for this category.

So, to help you keep your business on-track for sustained success vs. an unwanted sell-off or shut-down, here are 4 things about a business line of credit that you need to know now, not later!

4 Ways Business Lines of Credit Can Make Or Break Your Business Today

  1. Business Lines of Credit aren’t Business Loans. You may be reluctant to apply for a business line of credit because you don’t want to take out a business loan. However, lines of credit aren’t business loans.

    They function much like credit cards (but with much better terms and a lower cost of borrowing than most retail products). You only pay interest on the amount you borrow — not the full amount that is available.

  2. You should apply for a business line of credit before you need one. As you’ve experienced, there are two axioms on the business landscape: a failure to plan is a plan to fail, and change is the only constant.

    In other words: yes, you need to have a map so you know where to go but don’t count on the journey being straightforward — because both obstacles and opportunities will arise.

    If you apply for a business line of credit beforehand and have it at-the-ready, you’ll be in position to pivot when a new situation arises. Otherwise, you’ll be forced to scramble to boost your working capital, which will take time, and will add to your cost, risk and stress.

  3. You do not need collateral to get a business line of credit. Banks insist that all borrowers pledge collateral to secure a business line of credit. This can be equipment, inventory, buildings, vehicles, securities, cash, and so on.

    However, banks aren’t the only organizations that offer business lines of credit. For example, at National Business Capital & Services, we do not require collateral for some of our loans.

    Depending on your business situation, we have both secured and unsecured loans available.

  4. You do not need excellent personal and business credit scores to obtain a business line of credit. It’s the same story as above: banks insist on high personal and business credit scores, but at National, we have no problem approving business lines of credits for borrowers that have impaired or bad credit.

    At National, you do not need to be in business for a couple of years to qualify for a business line of credit, as you would with the average bank. Just 6+ Months!

Learn More About Business Credit Lines and Business Loans

To learn more about how a business line of credit could ensure that your business stays safe, strong and successful — and doesn’t risk heading towards a sell-off or a shutdown — contact us today at (877) 482-3008 for a free consultation.

Or, fill out our 1-minute application online to get started, and receive funds in as little as 24 hours. Find out why business owners like you across the country trust and recommend us as partners in their success story!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.