Business Lines of Credit
- Home
- /
- Business Line of Credit
Business Line of Credit: What Is It?
A line of credit (LOC) is a flexible revolving loan in which a borrower and a lender—typically a bank or a private lender—agree on a cap on how much money the borrower can take out at any given moment. These funds are available to the borrower, subject to timely payments and compliance with the maximum quantity permitted by the agreement.
The remaining amount on a line of credit is revolving, allowing the borrower to use the money, pay it back, and then use it once more. Lines of credit are comparable to business credit cards in this manner.
Typically, business owners will use a line of credit to remodel or expand their store or offices, acquire new tools or equipment, pay their employees, buy inventory, start a marketing campaign, or take care of any unforeseen costs.
The fact that Onkoure Financial Services line of credit offers more flexibility than a typical business loan is a key benefit for company owners.
Requirements:
- Minimum of 2 years in business.
- Average monthly revenue of $20K.
- 4 months’ worth of business bank statements.
- Less than five bad days per month for overdrafts.
- The required credit score is 550.
Application:
- Method Complete the web form and provide information about your company.
- We examine the financial records and income of your company.
- If your submission is accepted…
- Within 24 hours, the money is transferred into your account.
Easy access to business loan lines
You can always get the money you need with a Onkoure Financial Services Unsecured Business Line of Credit (LOC).
You may be accepted for up to $55,000 if your company has been operating for at least two years.
The best aspect is that you only have to pay interest on the money you actually withdraw from the loan—not on the total amount. We don’t impose early payment fees. Pay in full before interest accrues. Use the immediate line of credit from Onkoure Financial Services to grow your company right away.
- Loan amounts: $5,000 to $55,000
- Terms: 6, 9, and 12 months
- Minimum credit score: 550
- Pay only for the money you use
- Fast and easy online application
- 24 Hour approval and same day funding
- Program available in all 50 states
- Early payment discounts (save on interest)
- Interest Rates starting at 15%
How can I get a credit account for my business?
You’ll have to submit a ton of paperwork if you file for a line of credit with a conventional bank to show that your finances are stable and that your credit score is solid. There is no assurance that your loan will be approved, even after you have turned in all the required papers.
In contrast, online lenders like GoKapital offer more open requirements than banks do.
You only need to have been in company for at least two years and make at least $20,000 per month to qualify for an unsecured line of credit. Within 24 hours or less after examining your application and your company’s revenue, you will learn whether you have been accepted. Additionally, you ought to receive an offer that details the rates and credit conditions.
Don’t worry if you were accepted for a line of credit but you haven’t needed to withdraw any money yet.
Only the money you use will be subject to interest payments. You won’t have to pay anything back if you don’t use any money.
How business credit lines operate
Here’s a crucial query: How do you anticipate the unforeseeable in your business?
A revolving company line of credit can help to fill in any financial gaps even if you’ve been saving for a rainy day. However, positive or bad surprises can happen to anyone.
As long as you don’t exceed the credit cap, you can borrow money to balance out your cash flow, pay it back, and reuse it.
A line of credit is a versatile financial tool that, when used carefully, can help you expand your company, pay bills, take care of payroll, or make short-term investments.
A term loan versus a small business line of credit
One key distinction between a line of credit and a standard small business term loan is that with a LOC, borrowers can withdraw the capital they deem essential to meet their company’s needs and only pay interest on that amount of money.
They are not required to withdraw the full quantity that the lender has authorized. In contrast to a typical business loan, which requires repayment in equal monthly payments, a lump sum of cash is given to the borrower. In other words, a line of credit provides the borrower the freedom to withdraw any amount they choose, as long as they don’t go over the credit limit.
Unsecured and secured lines of credit
There are two kinds of lines of credit for businesses: secured and unsecured. If you’re thinking about obtaining one, keep this in mind.
The difference between the two is that since no collateral is needed for an unsecured LOC, the approval procedure will be quicker.
In contrast, because a secured LOC is secured by your assets, you can draw more money under one of these arrangements. Small company owners typically favor an unsecured line of credit.