Each year, 627,000 new businesses start-up in the United States alone. And if you're one of them, you may be wondering how to secure a startup business line of credit.
Many online business loan companies, as well as the traditional versions at banks and credit unions, require you to have been in business for a year or longer. In some cases, they require you to have turned over a large amount of money before you qualify.
But if you're a new venture with a solid track record over your first six months, where can you turn?
Read on for more information on opening a new business line of credit, and how to get approved to do so.
What is a Business Line of Credit?
Before we show you how to get approved for your business line of credit, let's talk shop. What exactly is a business line of credit, anyway? How does it differ from a business loan?
Well, a line of credit for a business operates very similarly to a personal line of credit. A business loan, for example, is a fixed amount of money you take out for your business needs. You'll then pay it back over a fixed term.
A line of credit is different because it is, in essence, a never-ending cycle. The line of credit is there as long as you need it. Its flexibility is its main advantage over a limited loan, meaning that it's not just a certain amount of money you pay back one time. Instead, you can keep borrowing and repaying it until you decide the line of credit is no longer working for you.
For example, if you take out a business loan of $10,000, you get that $10,000 one time and then you repay it. If you take out a line of credit of $10,000, you can repay it and then it resets itself so you still have a $10,000 line of credit. This way, it keeps on giving.
Getting Approved for a Capital Collaboration Startup Business Line of Credit
Getting approved for a business line of credit varies across lending institutions. As such, we'll go over what it takes to get approved for a Capital Collab Line of Credit. Bear in mind that just because you're approved for Capital Collab, it doesn't mean you'll be automatically approved for other lines of credit.
On that same token, being approved for one of our lines of credit does not mean other financial institutions will approve you.
Capital Collab has very clear standards for the types of businesses we give lines of credit to. This makes it much easier for you to understand from the outset if you're likely to be approved.
In order to receive your Line of Credit, you'll need to have been in business for six months or longer. You'll need a personal credit score of 620 or more and a monthly revenue of at least $20,000.
If you meet those criteria, you'll likely be approved for your Line of Credit.
If you're still unsure, we have a pre-approval system that tells you how likely it is that you'll be approved for a Line of Credit. In just 60 seconds, you'll know if applying for the Line of Credit is the next move for your business. This won't affect your credit score and will give you greater power and knowledge as you move into the next steps of financing your business.
How Quick Will I Receive My Line of Credit?
Once Capital Collab approves your Line of Credit, you'll get your capital in almost no time at all. In just two to three days, you could have the cash in your account, ready to help you grow your business and take it to the next level.
How Much Credit Can I Get with Capital Collab?
Our lines of credit are flexible, allowing you to choose the amount of money that works best for you and your business. We're here to help your dreams come true so that you can truly make your business everything you've always dreamed of.
At Capital Collab, your maximum line of credit is $250,000, meaning that you can really take your business to that next level.
What APR Can I Count On from Capital Collab?
Capital Collab operates at a standard and upfront APR. You'll know your APR before you agree to the Line of Credit, and how much interest your business will be paying back when using the Line of Credit.
While the APR is different for every business depends on a variety of factors, our APR starts at a low level of just 7.99%. This means that you won't be paying massive interest fees, making your repayments completely unfeasible for your business.
Going Forward with Your Business Line of Credit
As you can see, a startup business line of credit is a fantastic and flexible way to ensure that your business remains on its feet. Or, it can help you grow your business to levels you had only dreamed of before. From taking on new stock to buying new machinery to opening up a new location to adding to your team, the opportunities with a new line of credit are absolutely endless.
Are you ready to take your business to the next level? If so, click here to begin the pre-approval process. It will only take a minute or less, and you'll have a better idea of whether or not you're eligible for Capital Collab's Line of Credit.
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Checking for pre-approval will not affect your credit score.
[author] [author_image timthumb='on']https://capitalcollab.com/wp-content/uploads/2019/11/strategic-capital-logo-stacked.png\[/author\_image\] [author_info]Capital Collaboration | Headquartered in Kansas City, Capital Collab has deployed over $500 Million to over 6,800 entrepreneurs to help them grow their businesses and achieve their dreams. [/author_info] [/author]