It is essential for businesses to have access to lines of credit. These open up additional financing sources for small and medium purchases, plus they allow businesses to build strong credit ratings so they can access large-scale funding and experience lower payments. Unfortunately, not all businesses meet the stringent requirements to get unsecured lines of credit through traditional sources, such as banks and major credit card holders. However, there are sources for business credit for entrepreneurs to help build up the company’s credit rating, and you will not have to search long to find them.
Vendors are a Credit Gold Mine
Frequently overlooked by businesses, vendors make excellent sources of business credit for entrepreneurs, and are willing to extend lines new and emerging business owners. By using these lines of business credit, your company will be able to boost its credit rating on a monthly basis. Additionally, some vendors and suppliers will report their information to credit agencies, so even if they do not offer business credit to other companies, purchasing from them and paying off the bills on time will also build the credit rating. It is a good idea to discuss both lines of credit, as well as if they report their information before deciding to do business with a particular vendor, in order to ensure that your purchases and excellent business practices are being put to good use.
As well as, Asset Based Lines of Business Credit for Entrepreneurs
Asset based lines of credit uses a company’s equipment, receivables, property, and other owned assets to create a revolving line of business credit which is accessible as it is needed, as opposed to taking one lump sum as with a traditional bank loan. This credit is not a loan, and therefore does not place debt on the balance sheet. Asset based lines of business credit for entrepreneurs are arranged through a commercial finance company, and they will work closely with business owners to get the most value for their assets. As your operation grows and sales increase, the amount of financing available through the line of credit will also increase.
And Unsecured Lines of Business Credit for Entrepreneurs
Another source of business credit for entrepreneurs is also directly through a commercial finance company. Commercial finance professionals can offer unsecured lines of credit to new and small businesses who do not meet the stringent requirements of conventional credit and lending sources. These lines of credit are based the company’s sales, and small businesses can get spending limits $500,000 and beyond. Most startups in good standing can get unsecured lines of business credit up to $100,000.
If your company could make good use of business credit, or if you would like to see what other financing options are available, contact Perfect Alliance Capital at 847-851-2223, and let our expertise and knowledge work for you.