Business Line of Credit
When small businesses encounter the need for capital, they often run into a couple of problems. First and foremost, many are unsure of the exact amount they will need to grow. While small business loans can meet some merchants’ needs, they are often quite tedious and time-consuming to secure. They also lock the business to an interest rate that can cause problems for those in seasonal industries. A business line of credit (LOC) is an alternative to traditional business loans that provides much more agility and flexibility.
How to get a business line of credit
A business LOC provides the merchant with a pool of funds up to a specified limit. The merchant can use the funds whenever the need arises and will only pay interest on the amount that is actually borrowed. Although interest rates depend primarily on the state of the business, our funding experts work diligently to secure the best rates possible for our clients. If the customer is approved for a revolving line of credit, they can borrow up to the full amount without undergoing another approval process, after repaying the initial debt. MobyCap also offers a virtual line of credit, which works similarly except the customer can take on more funds even before the initial debut is repaid. We feel offering multiple options gives us the best chance to meet each customer’s unique needs. In addition to the flexibility and reasonable interest rates associated with business LOCs, another attractive feature is the typically quick access to funds. Some businesses receive instant offers upon submitting their information, while many others have access to funds within one business day.
Virtual line of credit
As another flexible business funding option, MobyCap also offers an exclusive virtual line of credit. Similar to a revolving line of credit, our virtual line provides a pool of funds for the customer to draw from when needed. However, once the full amount is withdrawn, the contract is fulfilled and we can then renegotiate an enhanced agreement. This offers our clients the opportunity to secure lower rates and higher funding amounts while building internal and external credit. Lastly, the virtual line is much easier to qualify for, both in terms of paperwork and underwriting parameters, making it an ideal fit for business owners looking for flexible financing. Because we strive to create fruitful, long-lasting relationships with all our customers, we’ve created this product with their needs in mind.
*MobyCap is not providing funding to new/startup companies at this time. We require a business to be operational for at least one year and generating at least $50k in revenue per month to do so.
Frequently Asked Questions:
A business line of credit is an alternative financing option that allows the recipient to withdraw from a pool of available funds whenever necessary while only paying taxes on the amount actually borrowed.
Business lines of credit are beneficial in that they afford businesses with flexibility to borrow money instantly when necessary, are quick to obtain approval for, and only apply interest to the amount of money actually utilized.
Due to their flexibility, business lines of credit are most useful to companies that work on variable projects, are seasonal, have unpredictable client bases, or often need access to capital quickly.