Revolving line of credit provides capital for your business in times of need.
Revolving line of credit financing can be an excellent method for financing your business. With a revolving line of credit a bank will lend a specific amount to a borrower, and after it has been repaid the amount can be borrowed on again. This could give your business the peace of mind that additional capital is available if needed.
Your chances of first getting approved for a revolving line of credit will increase dramatically if your business has started establishing business credit scores. These scores are different than your personal credit scores, but they work for your business just like personal scores work for you. Banks like to see a history of your business paying back loans on time.
You can start establishing credit by applying for a business credit card and a vendor line of credit from places that will report your payment history to the Small Business Financial Exchange (SBFE). You should not have to give up your social security number to apply for a loan that will report your information to the SBFE. Your goal is to separate all personal credit from your business credit.