Business Financing Programs

Program

CONVENTIONAL LINES OF CREDIT

Program Description

Most entrepreneurs would rather have a conventional credit line versus a loan. The reason for this is with a credit line, you only pay on what you have outstanding. So, if you have a credit line for $100,000 but only need $5,000, you can use that line for your $5,000 worth of purchases, and only pay on that amount you use.

And as you pay down the credit line balance, you can then re-use those funds again and again. Plus, you can take cash from the line from a debit card, which you cannot do with credit cards unless you are willing to pay high cash advance fees.

The best credit lines with the lowest rates are provided from conventional banks and are guaranteed by SBA. This means you must meet SBA’s stringent loan approval requirements for approval.

Most important, you should have good personal, bank, and business credit. You will also need collateral for 50% or more of what you are borrowing. And most important, you will need to provide 2-3 years of tax returns that show your revenues are increasing from year to year, and that you are claiming posited net profits at the end of each year.

Required to Qualify

Good consumer credit and tax returns that show profits

Loan Amounts

$5,000 - $1MM