Whether you are looking to start a business or you already have a business, it is a good idea to have funding available for your business. A business line of credit could be a good option for you.
According to the SBA, “For business owners, getting unsecured business lines of credit is by far the best choice for having that cash on demand. The fact is that business owners want access to funds – whenever they need it, at a competitive rate and with flexible payment options.”
Though you have many different funding options, you must choose the option that best fits your needs.
For instance, you have…
- Business Loans
- Business Cash Advances
- Equipment Financing
- Commercial Loans
- Business Lines of Credit
- And more
Today, we will look at how to get a business line of credit in 5 simple steps.
Ok, let’s dive in.
How to get a business line of credit
When you have a better understanding of the expectations for business funding, then you can ensure you are putting your best self forward. This improves your chances of getting approved. Of course, there are no guarantees, but when you follow these 5 steps, it should give you a great head-start.
Here are your 5 simple steps…
- Check your credit score
- Review your credit report
- Do you have a good credit score?
- Request a free consultation to learn about your funding options
- Apply for business funding
Check your credit score
When you desire a business line of credit, the first thing you should do is check your credit score. You want to make sure you have a good credit score. Typically, you want a credit score of 680+. Of course, higher scores are better. The higher your credit score, the better your chances of getting funding for larger amounts with the best terms.
In some cases, you may be able to acquire funding with a 600+ credit score. If you can, just make sure your terms are reasonable.
Review your credit report
Next, you want to examine your credit report. You can usually get a copy of your credit report for free from the major credit agencies.
According to The Balance…
“In the United States, there are three major credit bureaus: Equifax, Experian, and TransUnion. When creditors and lenders check your credit, they’ll very likely to check your credit with one or all three of these credit bureaus.
All three of the major credit bureaus are publicly-traded, for-profit companies—they’re not owned by the government. The government does, however, have legislation—the Fair Credit Reporting Act (FCRA)—that regulates how these and other credit bureaus can and must operate.”
Once you have a copy of your credit report, ask yourself the following questions:
- Do I have any negative information?
- Do you have a lot of recent inquiries?
If you have negative information, it could prevent you from getting funding. You should try to correct or fix any negative information on your record.
If you have a lot of recent inquiries, it could decrease your chances of getting funding as well. It may look like you are desperately seeking funding. And though that may be your situation, you don’t want it to appear that way to funding companies.
You may consider “shopping around” to compare options, but if you get a lot of inquiries on your report in a short time, you could actually be limiting your options.
Do you have a good credit score?
A good credit score is typically 680+. If you meet that criteria, you may have a good chance of getting funded. You just want to make sure you have little to no negative information and recent inquiries on your record.
If you think you will have a problem in this area due to your credit score, negative information, or inquiries…then you could consider a credit partner. If you have a credit partner that is qualified, this could be another option.
Then once you have a good credit score of a credit partner, you can move to the next step.
Request a free consultation
When you are ready to learn more about what funding options are available for you or to learn more about how to get a business line of credit, you can visit this website and request a free consultation.
The company will contact you shortly to go over your options and guide you along the process.
This company provides alternative funding options including business lines of credit up to $200,000.
They have a simple process and typically require less paperwork than you would have from a bank.
Apply for business funding
After you have completed your free consultation, you will better understand what funding options are available to you. Then you can decide which option is best for you. And if it is a business line of credit, then you can begin the process to apply and get funded.
Today, we covered how to get an unsecured business line of credit in 5 simple steps. You should have a better understanding of the requirements and what to expect during the process.
This should provide you with the best chance to get the funding you need.