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Business Line of Credit

Business Lines of Credit for Small Business

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What is a Business Line of Credit?

A business line of credit works similar to a business credit card by providing small businesses with access to flexible cash when they need capital fast. With a business line of credit, borrowers have the flexibility to draw up to a set amount from the credit line, and repaying only the amount withdrawn, including interest. However, with Merchant Advisors lines of credit, you can choose the payment structure to make weekly or monthly payments and borrow more cash as your principal amount is repaid.

A small business line of credit can help businesses to fill cash flow gaps, obtain working capital, or address any business emergency or seasonal expenses. The fundamental benefit of using a business line of credit is its renewability: you can borrow funds as you want, repay them, and borrow again. This renewability makes a business line of credit the most valuable financing option for small business owners.

Loan Range
Credit Line

Up to $100,000

Repayment Term

12, 18 or 24 months

Interest Rates
Payment Frequency

Weekly or monthly

How A Line of Credit Works?

It is a flexible arrangement that gives borrowers a maximum loan balance to borrow and use funds. You can borrow as much money as you want to take into account you don’t exceed the maximum limit of your credit line. Flexibility is a major advantage, where you don’t have to use the total amount you're approved for – meaning you don't have to repay that total amount. You’ll only pay what you borrow from the loan balance with interest. And after payment, your credit limit goes back up. Lines of credit are available in secured, unsecured, revolving, and non-revolving form.

How You Can Get A Line Of Credit?

Online lenders like Merchant Advisors offers lines of credit to small businesses even with poor credit scores. You can get approved for a Merchant Advisors line of credit in just 3 minutes or less. All you have to provide is your business and personal information, along with your bank details. Your loan application will be analyzed and the approval decision is made in 24 hours.

Once you're approved, you don’t have to pay anything right away until you actually borrow the funds. You can use the funds as and when needed, and if you don't use it, you don't pay anything.

Getting business funding from traditional lenders is challenging especially for borrowers with less established credit histories. With Merchant Advisors, you can apply for a line of credit loan via an online-automated process – allowing you quick turnaround time to fulfill your business financial needs.

What Is A Revolving Line of Credit?

Most small businesses use lines of credit for working capital purposes. A line of credit can help business owners like you to smoothen business cash flow. Most lines of credit are revolving - quicker and flexible than traditional loans. Revolving credit is a flexible borrowing method where you borrow money in increments up to a pre-approved limit, rather than borrowing a fixed amount of money all instantly. After making regular payments on a predetermined schedule, you can borrow more as you paid back your principal amount.

The flexibility and speed are what make a revolving line of credit an effective cash flow management tool for small businesses and an ideal solution for short-term capital needs. Revolving lines of credit are generally used to assist small business owners to manage the monthly business ebbs and flows: bills payment, payroll, fill cash flow gaps or make short-term investments. Getting revolving credit can help you to leverage opportunities, even when you don't have cash available to invest.

With Merchant Advisors, you can secure revolving lines of credit up to $250,000. We don’t just consider your credit score. Instead, we use a holistic approach to evaluate your business performance via our online, automated approval process to help you get quick funding without the hassle of extensive paperwork and long wait times.

Revolving Credit VS. Non-Revolving Credit

The main difference between these two credit lines is the reuse of funds once you pay them off. With a revolving line of credit, you can reuse the funds after paying the principal balance, whereas, with a non-revolving credit line, you're not able to reuse funds once you've paid them off. In addition, non-revolving credit has calculated payment schedules and lower interest rates.

Revolving Credit Lines VS. Business Credit Cards

A revolving line of credit works similar to a credit card, but they’re both different products. With a revolving line of credit, you get higher loan amounts. On the contrary, credit cards have higher interest rates and additional fees for business cash advances and balance transfers. Credit cards also require monthly as they’re unsecured loans that also require personal guarantee – making you personally liable for debts. While comparing these two options, a business line of credit is the better option.

Revolving Lines of Credit VS. Traditional Loans

Revolving lines of credit have a lower interest rate and closing cost than traditional loans. You can also borrow funds with a revolving credit line as much as you want within your approval limit. A traditional loan has a regular interest rate over the loan term and it’s a longer-term financial proposition. These loans are typically used for large purchases or investments with fixed payment terms on specific dates. While comparing revolving lines of credit and traditional loans, remember that revolving lines of credit are better suited for repeated cash flow while traditional loans go off well for investments or large purchases.

Choose the Best Business Line of Credit Today

Get the business funding that fits your business the best

Why Merchant Advisors?

At Merchant Advisors, we understand your unique needs and provide customized small business loans to keep your small business progressing.