Line of Credit (LOC)

About Lines of Credit

A business line of credit is one of the best financial tools that is readily available to business owners. This is a flexible short-term financing option for merchants who need working capital for an assortment of things. A Business Line of Credit (LOC) allows small business owners to withdraw funds whenever they need money, this way, they always have a safety net for emergencies. There is no penalty for the amount of times the merchant draws funds from the account. They can use it daily, weekly, monthly, or even once a year. This sort of financing is intended to keep merchants secured with the money they may need, and have it at their disposition any time. Lines of credit usually are repaid between 6-9 revolving months. While making use of the line of credit and making payments on time, small business owners will build their business credit over the repayment term. This enables them, in the future, to qualify for larger financing options.

Advantages of a Line of Credit

This financing option seems to be preferred amongst small business owners because of the advantages associated with the terms of the business line of credit. When a Line of Credit has been approved and put to use, the business owner will only have to repay whatever amount of funds they drew from the line of credit. Unlike short term and midterm financing, where repayment is calculated from the base amount that was borrowed. Business Lines of Credit are calculated based on use. Another advantage is that this is readily available credit at the fingertips of the merchant.

  • Only Pay For Funds Used
  • Builds Credit
  • Weekly/Monthly Repayment
  • Minimal Paperwork
  • Readily Available Credit
  • Short Term Financing 6-9 Months

How to Get a Line of Credit

 

Ascend Funding prides itself in making the application process as hassle free as possible for our clients. We understand small business owners have company operations to take care of and a business to run. This is why we require minimal paperwork and a simple online application form. This form can be completed in a matter of seconds from anywhere: a phone, desktop, or  tablet. We would never want a client to make a hasty decision if they are uncertain of any of the terms regarding the financing process. We have a dedicated team of funding specialist that are always available to take questions and help clients every step of the way. Once all documentation is submitted, merchants simply await the approval of their financing and the funds to be disbursed.

 

Line of Credit Requirements

  • 1-Year in Business
  • Minimal NSF Overdraft Activity

Line of Credit Uses

Small business owners rely on alternative financing option because the qualification requirements are less strict than bank loans, paperwork is minimal, and the implementation of the money is not monitored. Lines of Credit offer an advantageous power of spending to the merchant, we leave that up to our clients. Business Lines of credit are often used in the following ways:

  • Launch New Products
  • Restock Inventory
  • Balance Out Low and High Season Cash Flow
  • Marketing
  • Payroll
  • Renovation Projects
  • Open More Business Locations
  • Fund Short Term Projects
  • Hire More Staff
  • Upgrade Equipment