Line of credit benefits.

There are several advantages of revolving credit including easily available funds, financing can be secured, and you pay less interest than you would otherwise with a credit card. Before we dive too deep into this, what exactly is a revolving line of credit?

A revolving line of credit is an open-ended term loan that allows you access to a specified amount of capital as needed up to your credit limit. While it is similar to that of a credit card, a business revolving line of credit does not report on your personal credit. Unlike some well known programs, interest is not front loaded and is only simple interest, you only pay for the time you have the draw out. Compare that to the “others” and this is the best structured business line of credit in the alternative finance industry. No hard inquiry at any part of the process.

Other advantages of revolving credit are they can be used for companies and seasonal businesses that experience ebbs and flows throughout the year. Most businesses face unexpected expenses such as the need for new equipment, rising material costs, or even licensing and regulatory changes that need to be kept current.

Whether your company experiences seasonal highs and lows or has gaps between completed service and payment, you will find that a revolving line of credit can assist. For example, if you receive a large influx of orders and need to purchase inventory, a revolving line of credit allows you to do so. Got a marketing opportunity that can turn a quick ROI? A line of credit is a great way to kickstart this.

Readily Available Funds – One of the largest benefits of having a revolving line of credit is that the money is available to your business whenever you need it. There is no approval process; you have access to your existing line whenever you need to borrow.

Your Finances Are Secure – Various revolving lines of credit can be an asset for the purpose of lowering interest rates. Differing from credit cards, revolving lines of credit will not result in a credit drop when utilized, this is a key way to protect and separate your personal credit from your business needs.

Lower Interest Rates – While there are many factors the are involved in securing a revolving line of credit, including your credit score, you can lower your interest rates by paying off your line of credit draws early. Lines of credit do not have the fixed cost of capital that an merchant cash advance has, and is much friendlier rate wise, with full control in your hands on the cost of capital.

To learn more about the advantages of revolving credit, make sure to contact the Strong Capital Funding team today.