Business Line of Credit
You have many options when it comes to securing financing, so why partner with Clear Skies Capital?
Looking for the lowest rates on a line of credit for your small business?
With Clear Skies small business lines of credit, you get to decide when to use approved funds. In short, you can make a withdrawal any time you need capital. It’s that simple!
Isn’t that amazing?
How Does a Business Line of Credit Work?
Having an open business line of credit can be a tremendous asset for your small company. It allows you access to a package of funding that you can draw from when you need it the most. Business lines of credit work slightly differently to traditional business loans.
They are more flexible and permit you to borrow up to a specified amount. The amounts are usually between fifty and five hundred thousand dollars. You then repay only the amount you’ve borrowed, including interest, of course.
Having an open line of credit like this allows you to sail smooth during the times when there’s a blockage in your cash flow or you need more working capital. An unsecured line of credit helps your business take advantage of one-off opportunities that come up.
In times of emergency, a small business line of credit can be a lifesaver. Traditional bank loans need a fixed number of repayments over a specified amount of time. A revolving line of credit for your business works differently. It’s open for an indefinite period of time, making it a longer lasting solution. This type of credit also offers you as a small business owner greater flexibility in what you use it for and how you repay it.
There are 4 main kinds of revolving credit. All of them may either be secured by assets or not.
- Short-term line of credit
- Medium-term line of credit
- Traditional bank loans
- Business credit cards
Advantages and Disadvantages of a Business Line of Credit
- Interest is only due on the money you’ve drawn
- Funding is immediately accessible anytime you require it
- Bad credit business is still considered
- Good way to improve your credit score
- Use it for a broad spectrum of business needs
- Up to date documents may be required before each withdrawal
- Low credit scores pay higher rates of interest
- Collateral may be requested
How much do you qualify for?
Who Qualifies for a Business Line of Credit?
Even smaller, less established businesses can qualify for a short-term line of credit. We also offer medium-term credit lines to businesses that have an established financial track record and a good credit rating.
We will calculate things like your maximum available funding and terms of repayment on an individual basis. We’ll then have a look at your credit rating, history and projected sales, for example.
To give you an idea, clients who have previously been approved for our small business line of credit have mostly had an annual revenue of more than $180 000 and a credit rating of 630 or more. They have all been in business for more than a year.
Briefly the line of credit requirements can be summed up as following:
- Yearly revenue over $180,000
- Credit rating over 630
- Trading for over a year
When applying for your small business line of credit, Clear Skies Capital will require certain documentation from you:
- Valid driver’s license
- A voided business cheque for obtaining certain information
- Bank statements for a specified number of months
- Your business statements of profit and loss
- Credit rating
- Business and personal tax returns for the previous financial year
How Does a Small Business Line of Credit Work?
It’s a reality that every small business will face an emergency at some stage. It’s difficult to prepare for the unexpected when it hits your business. Just one emergency, like a fire, can cause a major setback.
In these situations, it’s vital to have a flexible business financing option available. Clear Skies Capital has helped many small business owners to obtain that finance in the form of a small business line of credit.
We’ve helped many small businesses safely through emergencies. We also help small, still growing companies take advantage of opportunities as they arise so that they can expand.
Basically, a small business line of credit works almost the same as a personal credit card. Clear Skies Capital will, if you’re approved, give you access to a set amount of funding. You may withdraw from it as and when you require.
Interest and payments only become due once you actually start using that finance. You only pay for what you use. It’s often called “revolving credit” because it can be utilized over and over. Once you’ve repaid what you’ve used, you may draw out more capital as you need it.
At Clear Skies Capital, we offer different kinds of lines of credit. We differentiate between short and medium terms. Of course, small business lines of credit don’t actually have set term lengths.
Provided that we at Clear Skies believe that you’re a reliable borrower, you can withdraw and pay back the funds indefinitely. However, the loose labels do help us compare short term loans and short-term lines of credit. The difference is mainly in the minimum qualifications needed, the maximum size of the loans and the rates of interest charged.
Traditionally, banks provide the longest lines of credit, but they do have stricter requirements, such as an excellent credit score. Online lenders like Clear Skies Capital provide medium- and short-term funding, often with no credit check and without personal guarantee.
How Can a Small Business Line of Credit Benefit Your Business?
The main advantage of this type of credit is that it is renewable. You can, in your own time, draw out finance, pay it back and draw it out again as it’s needed.
This flexibility is what makes a small business line of credit so valuable for the owners of small companies.
- Fund day to day operational expenses
- Fund expansion
- Secure gaps in your cash flow
- Provide emergency relief
- Take advantage of amazing opportunities as they arise
- Fund payroll in quiet seasons
- Pay for seasonal expenses
- Make larger equipment purchases
Difference Between Business Line of Credit and Credit Cards
You may be thinking that a credit card is also a form of revolving credit, so why not just use one? Firstly, you need to be aware that credit cards charge higher rates of interest. They also ask additional fees if you make a cash advance or balance transfer. Another big difference is that credit cards need to be paid off monthly whereas business lines of credit normally do not.
There are different types of lines of credit. One type are secured, where they are backed by security such as stock, accounts receivable or property. Another type are unsecured and are backed only by your personal agreement.
As an example, let’s say Clear Skies Capital agrees to give you access to $50,000 for your small business. You use $20,000 of it for expansion. There’s still $30,000 available but you keep it for future use. Once you’ve paid back the $20,000 plus interest that you’ve spent, the full amount will again be available to you. You will not need to apply again. This saves a lot of time and effort, two things that a business owner cannot afford to waste.
There are, in certain circumstances, small business lines of credit that do not revolve. In other words, they don’t automatically renew when you’ve paid the loan plus interest back. If you’ve been a reliable customer, your lender will allow you to reapply and will probably reopen the line of credit.
Find Out if You Qualify in Three Easy Steps (1-2-3)
At Clear Skies Capital, we don’t believe that getting a small business line of credit should be complex or take up too much of your valuable time. We’ve come up with an easy way for you to access a small loan. You can apply from anywhere in just a few minutes.
Use our online form to fill in your basic business details. Link your cash flow data online.
We let you know how much funding you may access once we’ve reviewed your business performance. This is usually done within 24 hours.
Begin spending your money! Use what you need now and get the rest later when you need more funding to grow your business.
Why Wait? Call Today
Are you tired of traditional institutions saying, “No” to you? At Clear Skies Capital, we’re in the business of saying “Yes” because we want to see small businesses grow and succeed.
We understand the financial challenges that small businesses face and have the skills and the funds to help you solve them. So why wait? Call Clear Skies Capital today at 1-800-230-9822 and talk to one of our experts on how we can make money available to you.