According to a study conducted by a prominent bank in this country, more than 80% of small business failures are attributable to unwise or poor handling of business cash flow. Most businesses would be helped immensely, by having a much better understanding of how to obtain capital in a timely fashion, so it can be used to cover expenses and maintain cash flow.
Benefits of a Business Line of Credit
This is exactly where a business line of credit can be extremely valuable because it’s so flexible it can be used for almost any purpose. In addition to that, it can be an inexhaustible source of funds, provided that you are constantly repaying on any withdrawals made from the credit line. A business line of credit operates in much the same way as a credit card does, in that a balance is always available for your business needs, as long as you make monthly repayments that will restore your balance.
In some cases, a business line of credit can be unsecured and can have an outstanding balance of $100,000. Other types of business lines of credit can be secured by collateral, and these are slightly more common than unsecured lines of credit. Virtually all businesses would benefit from having a line of credit available to them because it can literally fill the gap created by slow incoming revenue, which most retailers are quite familiar with.
This can also be a crucial source of funding when you’re trying to grow your business, and lack the funding to do so just based on incoming revenue. Having a business line of credit provides several advantages that you can’t get from any other source of funding, and it just might be the difference between having your business survive and having it be just another failure.
Need a Business Line of Credit?
There aren’t many forms of financing which are as flexible and useful as a line of credit. If you need a business line of credit, contact us at Crimson Stone Capital Solutions, so we can discuss your eligibility.