Do you know that 80% of small businesses fail to survive because of cash flow problems? It’s an alarming figure reported by a US Bank study, but the problem can be resolved through direct lenders.
Businesses must understand how to get funds inexpensively and quickly. When you apply for funding with direct lenders, it’s possible to get cash in hand faster than going through traditional borrowing channels. Among the many quick-fix solutions that companies like Direct Lenders Funding can give you, a business line of credit seems to be the most effective.
Why should you choose a business line of credit to boost your company’s cash flow?
A business line of credit, as the name suggests, is meant to help businesses like yours get much-needed funds to stay afloat. Its’ something like a credit card. But it’s an easier way of getting cash advances. The best part is you won’t have to provide collateral for this loan.
- When you choose a business line of credit, you can get access to a prefixed sum of money borrowed on a per-need basis. So, rather than getting a lump sum upfront, you get revolving credit. When you use this method of getting funds for your business, it makes it easier for you to manage and grow your company.
- Unlike a regular credit card, this financing option comes with higher credit limits. You may use this for making withdrawals ad transferring funds to your checking account.
- It’s adaptable, versatile, and flexible and can be used for funding various types of businesses.
- When you have been approved for this, you can get the funds when you need these through withdrawals against your checking account. You are free to draw multiple times depending on your requirements, provided the outstanding balance won’t surpass your credit limits.
- A business line of credit is flexible since you can get funds as and when you need them. You can borrow repeatedly, and the repayment structure is flexible.
- You may use this funding option when you must cover big gaps in your company’s cash flow or when there is an unforeseen emergency.
- Unlike traditional bank loans, you won’t need to show a solid credit history or provide collateral to get this financing.
- When you choose to get cash advances from direct lenders, you control the amount of money you borrow and also the time when you borrow it. You pay interest only when this money is used. So, you have control over the funds, unlike traditional loans. With better control over company finances, you can make growth-driven decisions continuously.
- A business line of credit is advantageous because it can keep investors out by providing you with ample capital whenever you need it. Even if you do turn to investors at some point later on, you can start off your business comfortably with this financing.
- While a business line of credit will help you increase your cash flow when it’s needed most, eventually, you may need other types of financing. For instance, small business loans will give you funds at reasonable interest rates. But, to get these, you must show a positive credit score. This can be established using a business line of credit.
When you reach out to companies like Direct Lenders Funding, you can choose from a variety of attractive options. With no prepayment penalties and the freedom to get funds whenever you need them, you can scale up your business without worry. USA