Top 9 Benefits of “Revolving” Business Lines of Credit
These days, anyone who owns a business wants a true revolving business line of credit more than any other funding option.
But what is a “true revolving” business line of credit, and what makes it better than “normal” small business loans and business credit lines? Read on to find out!
Top 9 Benefits of Revolving Business Line of Credit
Here are the 9 most common reasons why more business owners are choosing revolving credit lines over any other funding options:
- Draw, Replace, Draw it Gain: This is where the “revolving” part comes in. With a revolving credit line, you can draw only as much capital as you need from a credit line, replace it if you’d like, and then this amount becomes immediately available to draw from again!
- Immediate Access to Cash=Greater Flexibility: True revolving credit lines are some of the fastest funding options available. Connected through technology, business owners can rely on their revolving credit lines to be immediately accessible to use whenever they need funds. This is especially useful to have in preparation of unexpected business challenges and opportunities. Through our expedited funding process, we can equip business owners with a true revolving business line of credit in as little as 24 hours.
- True Interest Rate APR: Revolving credit lines follow lower true interest rate APR, compared to other funding products like MCA’s and other forms of business lines of credit that follow factor rates.
- No Real Estate Collateral Needed: Revolving business lines of credit are unsecured, meaning you don’t need to leverage any real estate assets as collateral.
- No Prepayment Penalties: No penalty will be given to those who wish to pay their credit lines down or pay them off entirely at any time.
- Higher Control=Lower Cost of Capital: Because you can control exactly how much they want to draw, exactly how much you need at a time, you can have piece of mind knowing you’ll never have to worry about borrowing too much.
- Don’t Pay for What You Don’t Use: Unlike other funding options, you don’t have to pay for the total amount of your credit line borrowed. You can feel secure knowing you have available funds to draw from, even if you’re not using it.
- Build Your Credit as You Use It: As you draw from and use capital from your revolving credit line, you are in turn building your FICO score!
- Grow Your Credit Line as Your Business Grows: Banks take a stringent and frustratingly slow approach to expanding credit lines as requested by business owners. Fortunately, our revolving credit lines are constantly being reviewed in order to qualify business owners for credit line growth as their business grows.
Revolving Business Line of Credit Definition
A revolving business line of credit is an unsecured type of credit line that allows for business owners to draw only the amount of capital they need at a time, which they can then replace back into the total of their credit line, where it becomes immediately available to draw from once again.
This “revolving” nature this type of business LOC from “normal” business lines of credit and business loans. They are also unique in that they require no collateral to be leveraged.
Although somewhat harder to obtain than other funding options due to no collateral requirements, business owners often benefit from a lower cost of capital, greater control over the funds they use, and flexibility to draw funds as needed to prepare for any business challenge or opportunity.
Where to Get a Revolving Business Line of Credit
You can either get a business line of credit through a traditional bank, or through alternative options like us.
Banks, however, typically don’t like to offer revolving business lines of credit, as they see unsecured credit lines controlled entirely by business owners as a riskier move than other funding options.
This often results in collateral leveraging, high FICO and time in business requirements, high interest rates, and slow processing speeds.
Fortunately, financing companies like us specialize in providing business owners with true revolving business lines of credit with never any collateral needed, only 6 months in business and 650 FICO requirements, and an expedited, safer funding process for 90% of all business owners who apply.
How to Get a True Revolving Business Line of Credit
So if you think a revolving credit line would be the best type of funding option for your business, give us a call at (877) 482-3008 apply by filling out our 1-minute application online.
Through our exclusive connections to over 75+ specialized lenders, we’ll ensure we find the best revolving credit line in the global marketplace for your business.
David Surrusco is a Content Writer at National, best known for his work in creating what has become the best blog regarding business growth known to mankind: The National Advisor.