Secured credit line provides financial flexibility for your business.
Secured credit line financing is a flexible form of working capital that all businesses should consider. It is critical for cash flow management because it provides access to a line of credit that can be used anytime a need arises. This means that your regular business operations will not have to stop while you wait for the cash flow to come in that you need to pay employees, pay for inventory, pay for advertising, and more. Timing is essential for a business. You want to make sure you can make all of your required payments on time to minimize disaster.
A secured credit line gives your business security that funds are available if times aren’t good for a short period of time for your business. Sales are always fluctuating, especially for new businesses, so it is important that you have a backup plan so your business doesn’t fail.
A secured credit line functions just like a credit card in that you are given a credit limit and you can make purchases on that line of credit. You are only charged interest on what your business actually uses instead of on the whole line of credit like a loan. You can also make small or large payments on your line of credit each month, instead of being locked into a monthly rate much like a standard loan. This again gives you flexibility to either pay the minimum or pay the balance in full each month. Another thing to keep in mind is that once you are approved for a credit line you will not have to reapply. This eliminates any hassle involve with getting approved for loans, and again gives you the peace of mind that you always have this line of credit to fall back on.
Use our free business capital search engine to find lenders ready to provide you with a secured credit line.