Why do business owners consider approaching a credit union or community bank for a business line of credit? Typically, you can use this kind of revolving credit to withdraw money when you need it to manage cash flow, handle unexpected bills, or take advantage of an opportunity.
You will get approved for a maximum balance; however, you don't have to withdraw the total amount or pay fees on money you don't withdraw. You can find unsecured lines of credit for your business that won't require you to put up an collateral but are simply based upon different measures of your creditworthiness.
As a small business owner, you may see lots of offers to apply for a business line of credit from online lenders. You have to take care before impulsively succumbing to the promise of rapid, online applications and approvals. Most small business owners want convenience; however, they may not want to pay a lot more for it. According to an analysis from Time Money, many of these new, internet lenders make it difficult to understand fees and may not charge competitive rates.
Since these online lenders have marketed so aggressively, you may not even realize that your local bank or credit union can offer you the same kind of services and lower fees. These days, many community banks and credit unions also offer online applications. They also offer a local office with the personal service that will help you understand exactly what you get and what you have to pay for it.
A business line of credit can help your business grow, help you cope with urgent cash needs, and give you peace of mind. A local bank or credit union can offer you a convenient loan process, personal service, and competitive rates. Plus, you get the added benefit of knowing that you're doing business with a local financial institution also helps support the rest of your community.