Find the Lowest Rates on Business Credit Line

☞ Surprises happen—it’s a fact of life.However, how can you expect the unforeseen when it comes to your business? A single accident could set you back a long way if you’re not ready.
That’s why flexible business financing is so relevant. And LegalRaasta helps thousands of small business owners get that funding in the form of a business Credit Line. Let’s learn, how a business Credit Line can assist you weather storms and take advantage of unpredictable opportunities.

☞ What does Credit Line literally mean?
Understand, a business Credit Line is pretty similar to a credit card. A bank or lender grants you access to a definitive amount of financing, which you can draw from whenever you want or need. Although, you don’t make payments or incur any interest until you actually tap into those funds. You pay for what you use, in other words.

☞ The major leverage of a business Credit Line is its renewability: you can draw out funds, pay them back, and draw again. You can utilise a small business Credit Line to assist finance ongoing operating expenses, cover cash flow gaps, take advantage of unpredictable opportunities, and provide a cushion to protect against extremity. Since lines of credit are so tensile, they can also be used for payroll, seasonal expenses, and unknown problems or investments, as well as larger purchases.
This flexibility is what defines a business Credit Line such a valuable loan product for small business owners.

☞ Even though business lines of credit and credit cards are both forms of “revolving” credit, there are a few important diversification you should be aware of:
1). Credit cards normally have higher interest rates.
2). Credit cards charge extra fees for cash advances and, quite often, balance transfers.
3). Credit cards literally require payments on a monthly basis while business lines of credit normally don’t.

☞ The base cost of a business line of credit is pretty upfront: you take, you pay.
Different from a traditional term loan, which is one big lump sum with regular installments, with a business line of credit you’ll only pay interest on the cash you draw.

☞ For instance it’s time to pay the bills, but you’re still expecting to receive payment from your own customers making it difficult for you to pay what you owe.And unfortunately, it’s not the first time this has happened. You calculate that having a financial cushion of amount for instance, let’s say ₹ 15 Lakhs would help prevent this issue in the future. So you reach out to an online financial institution and apply to open a small business Credit Line of up to ₹ 15 Lakhs.

☞ What type of businesses are eligible for this tensile financing?
Younger, less established businesses might be able to qualify for short-term lines of credit, while medium-term lines of credit are more for businesses with good credit and a solid financial history. The maximum sum of funding available, introductory time of the credit line, and repayment terms rely upon your business’s revenues, credit rating, history, and other factors.