To get a business line of credit, you will either need to prove that your business will be able to pay back the loan, or you will need assets that are worth the same amount as the line of credit you are trying to get. It will therefore be very important to present well to the lenders your business re-payment plan. If lenders feel that your business will easily be able to pay them back the loan, they will not only give you the loan, but will most likely give you a lower interest rate as well, which is a lot of money saved!
If you cannot get an unsecured loan, you may be surprised how easy it may be to be able to get a secured loan. A secured loan does not only have to be assets, it can be stocks, bonds, or even the cash value of difference insurances! Assets are also not limited to just assets the business has either, it can also be assets from personal property of the owner. So, if you are the owner of the business, you could use your house as an asset if you wanted to. Just be prepared to lose your house if the loan cannot be paid back. If you feel confident, however, that you will be able to pay back the loan, you would most likely be paying a lower interest rate by doing a secured loan, which also means lots of money saved in the long run.
Be sure you always read the small print when choosing which kind of loan to get. Ideally, you do not want a loan that will penalize you for paying off a loan early. It should be your goal to get the loan paid off as quickly as possible since the sooner you pay it off, the more money you will save, and therefore, the more money your business will have.
