When you’re trying to grow your small business or to maintain steadier your class flow, one of the best ways you can accomplish this is through business lines of credit. Here are some tips on how you can go about securing a line of credit for your own small business.
Do Some Research
Before trying to apply for business lines of credit, it would be a great idea to do some research on the banks doing business in your town. Many of these may not be inclined to deal with small businesses, or they may have very rigid requirements for lines of credit. Good research should help you narrow down the list of prospects to two or three, and those are the banks you should apply to.
Establish Good Credit History
It’s very important that you pay all your bills on time, so that good credit history is built up right from the beginning. This will certainly be checked by any lender whom you apply to for lines of credit.
Be Careful of Exorbitant Rates
When you’re investigating lines of credit, be sure to pay close attention to the interest rates which are charged. They may sound reasonable on a monthly basis, but when projected out over an annual time frame, these interest rates can be extremely high.
Make Sure Paperwork Is Prepared
Most lenders will require solid documentation of your business status, including a business plan, balance sheet, and profit and loss statements. If you have everything prepared ahead of time, you will be in much better shape to justify your application for a business line of credit.
It would be best if you are prepared to accept a smaller line of credit to start with, especially if you have a limited credit history, or if your business is not as financially sound as it could be. By demonstrating that you are a good paying customer, your credit line should eventually be increased, and you will then have the cash you really need to support your small business.
Lines of Credit from Norris Commercial Capital
Very few business opportunities are as helpful as lines of credit for maintaining and establishing cash flow. If you would like to have better cash flow, contact us at Norris Commercial Capital to discuss obtaining business lines of credit.