We specialize in
Lines of Credit
Definition: A line of credit is a revolving account that can be borrowed from, paid down, and then borrowed from again. Once a credit limit is approved, the borrower can take out an amount up to that limit. But, they’re only charged interest on what they’ve borrowed. This is what makes lines of credit a great option for fluid expenses.
Overview
Not all business expenses come with concrete upfront figures. Building repairs, for example, may start as one problem that needs solving. But, once work has begun, discoveries are made that complicate the project. A wall that’s being removed was wired to the electrical system that now needs to be rerouted. Water damage is discovered in the ceiling during a ventilation inspection.
With most traditional loans, the borrower is stuck with a fixed loan amount. If they borrowed too little, they have to go through another loan process. If they borrowed too much, they’re stuck with high-interest payments and fees for early repayment. But, with a line of credit, they can take out as much or as little as needed, making this a much more flexible financing option.
A working capital line of credit gives a business cash to cover payroll expenses, supplies, or utilities. If business is seasonal, it can be used to pay the bills during the slow season. When sales pick up again, the credit balance can be paid down. If an influx of new hires means also bringing in new computers and furniture, a line of credit can cover the order. The balance can be repaid after closing the next big deal.
Lines come in two forms: secured and unsecured. A secured line is backed by assets the lender can claim ownership of if the borrower fails to repay. An unsecured line is not backed by collateral and is more difficult to qualify for. In this case, the borrower is protected from the loss of assets in the event of a default. But, lenders have to be confident in the borrower’s ability and likelihood to repay.
LOAN HIGHLIGHTS
– Lines of credit can be borrowed from and repaid multiple times.
– A borrower can take as much or as little as they need from the line.
– Unsecured lines are not backed by collateral, but secured lines are.
– Borrowers must have an excellent credit history to be approved for unsecured lines.
Take the next step!
↓ Find out what you are eligible for in terms of secured and unsecured lines
↓ Identify pathways to overcome lender’s objections
↓ Access the funds you need and grow!
Contact JBartolo Today To Get Started!
Why leave your brand to chance? You’re already busy running your operations. Let our team position your business for the right financing solutions. You’re already doing what you love. Let us do what we love and shape your financing to support growth.