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Be sure to speak with one of our representatives if you have any questions about business lines of credit.

There are upsides and potential drawbacks to all types of corporate finance. Credit lines are no exception. Here are a few plusses:

+ You only pay interest on the funds you use
+ Credit challenged companies are acceptable
+ Funds are easy to access and are readily available
+ Their overall flexibility is convenient in times of need
+ May be used for a wide range of business related purposes
For the sake of full disclosure, there may be some potential minuses to business lines of credit that you should be aware of:

- Collateral is required for certain types of credit lines
- Rates can be higher for credit challenged companies
- You may need to comply with certain financial ratios
- Additional documentation may be required with each draw
- You may need to maintain minimum net worth requirements

Business Credit Lines

Business lines of credit give companies access to revolving working capital, while allowing them to pay solely for what they use. Which one is right for you?
  1. Unsecured Line of Credit
    These lines range from $5,000 to $100,000, with no collateral requirement. The approval process is one to two days. As an unsecured line, this facility is primarily cash flow and credit driven. The annual interest rate is variable and is based on the Prime Rate.
  2. Secured Line of Credit
    These lines range from $100,000 to many multiples of $MM, with the company's tangible assets as collateral. The approval process can take as little as three to five days, to several weeks for larger credit facilities. The annual interest rate is variable and is based on the Prime Rate. However, as a secured line, the rates are typically lower than an unsecured credit line.
  3. Equity Line of Credit
    These lines range from $10,000 to $10,000,000, with the equity in real estate as collateral; either residential or commercial property. The approval process can take up to three to five days on larger facilities. The annual interest rate is variable and is based on the Prime Rate. However, as a secured line, the rates are typically lower than an unsecured credit line.
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