As a business owner, you probably already know access to working capital is the lifeblood of a business.  Alexander Graham Bell said, “before anything else, preparation is the key to success.”

So, it’s essential to be proactive and ready to deal with any unforeseen expenses in order to keep the business afloat. One way you can accomplish this is to get a line of credit for your business.

When it comes to business credit, there are various options to consider. A business line of credit is a preferred choice among small business owners for obvious reasons.

To qualify for a line of credit, traditional banks typically require good personal credit and a two-year track record of business history with healthy revenue.

Alternative lenders offer a faster and easier application and approval process but the interest rates are slightly higher. With alternative lenders, a business with healthy revenues can still qualify even if the applicant’s credit score is in the 500+ range.

You can apply for a business line of credit at your local bank or with an alternative lender. A line of credit can be either secured or unsecured. You can secure a line of credit with your assets or other form of security such as a certificate of deposit.

A business line of credit is more economical compared to other types of financing such as a term loan or merchant cash advance. Once the line of credit is established, you can draw funds from it by making a direct deposit into your business checking account, or by using a convenience check linked to the credit line account.

Similar to a line of credit, a business credit card is another option that may be a smart choice especially for startups or businesses with a minimal track record. Business credit cards are a different type of financial instrument than a line of credit, but there are advantages to using them.

For example…[MORE]