Small business lines of credit can be very important to your business success. A line of credit provides your business with the working capital it may need to purchase inventory, to finance receivables, to be able to take advantage of supplier discounts, and to better manage your cash flow.
Getting approved for a small business lines of credit is based on a your specific credit situation and typically that includes both personal and business credit. From the business credit side, lenders will require that your business has very good business credit scores.
In most cases you will need persoanl credit scores of 640 or better to qualify. However, that better your business credit scores the less you can get by with personally.
With a small business line of credit there is normally no collateral required. That is because like credit cards, a line of credit is revolving. Also financial statements and tax returns are typically not required for most credit lines. That is because they are pure credit score driven decisions.
Small business lines of credit are usually fairly low interest adjustable rate loans that are based on the prime interest rate or some other commercial index.
A small business line of credit can be an affordable way to pay for things that your business needs and are easy to pay back with automatic deductions.