Starting a company requires capital. For expansion purposes, an established business also needs cash in hand. To run smoothly, many small companies need money. There comes a time, however, when there is no liquid cash for the business owner to cater for daily expenses. A good business owner should have somewhere to access funds as quickly as possible when such moments come knocking.

Having a Business Credit Line is one of the most reliable sources of funds a business can gain access. Its the most convenient option to access finance that any company should have in the event of a decline in its cash flow. For any businessman, a business line of credit acts as an emergency fund, and that is why every business owner should have one.

Below is a quick overview of the business benefits of a business line of credit.

Cash Control

One of the benefits that a Business Credit Line has is that, unlike a bank loan, where they tell you how the cash needs to spend. Sometimes, the private lenders business loan also comes with strings (controlled use of funds) so that they can have control over how to use the cash. With Funding11 business credit line we don’t tell you how you will use your funds as long it’s for business use.

Flexibility

Having a business line of credit allows business owners to access funds whenever the need arises, unlike traditional business loans which are given to you as a lump sum. As they do not have a lot of cash on hand, it is very advantageous for small businesses. Instead, especially during emergencies, they would prefer to have access to cash from time to time. Another benefit of a business line of credit is that it allows business owners to handle cash flow better.

Builds Business Credit

Building a strong business credit history is advisable for a small business to make it easy to obtain business loans plus other forms of credit in the future. Using a Business Credit Line presents business owners with an excellent opportunity to build on their business credit by making all their payments on time. Make sure you repay on time if you have a Business Credit Line, as timely repayments will enhance your credit report.

Improves Business Cash Flow

The regular operation of the company is adversely affected whenever the cash flow into the business deteriorates. It is the primary reason why, when there is a need, a business owner should have access to credit. A company line of credit is one of the best methods that can inject money into the company during a financial crisis.

It has a Low-Interest Than Business Credit Cards

The interest rates charged on business credit lines vary but are comparatively lower than those charged on business credit cards and traditional business loans. The reality is that the lower the rate of interest, the lower the monthly repayment, which implies more savings. 

The purpose of any company is to make a profit, but if a large amount of revenue generated by the company is used to pay for loans, the business can not be profitable. With business credit lines, however, the low-interest rates allow you to reduce the cash outflow that keeps the company financially stable in the long run.

In conclusion, it is good to have a Business Credit Line so you can easily access funds to keep the business running. This is because it has no set rules on how to use it; it is flexible in terms and helps to build the business credit of your company.

Funding11, the UK’s fast-growing finance brokerage, offers hassle-free business credit line. We have everything your company requires and more with a 24-hour turnaround, high approval rates and cheap interest rates. 

Visit Funding11 website, and you can check your eligibility within 60 seconds for a Business Credit Line or call us to talk to an expert finance consultant now on +44(0)020 3475 9299.