Revolving lines of credit for businesses are very often the most flexible and most expedient solution for any kind of cash shortage, and they’re also used to take advantage of business opportunities when they become available. There are a number of ways that having a revolving business line of credit can truly transform your business into a stable, profitable enterprise.

Credit Limits

Generally speaking, you’ll be eligible for a considerably higher credit limit on a revolving business line of credit than you would be on your personal credit card. When you are conscientious about repaying borrowed amounts against the line of credit, you will probably also be eligible for greater credit limit increases from your bank.

Improved Business Credit Profile

Once you have acquired a business line of credit and are successful in paying off the balance conscientiously, it will set you up for a favorable credit profile with all the significant reporting agencies. Having this favorable business credit profile will then allow you to be eligible for other sources of loans as well.

Tax Write-Offs

Since you’ll be able to track your business expenses very precisely with a business line of credit, it will be much easier for you to obtain tax write-offs. All these business purchases can be segregated from personal purchases, and that will help to make solid claims during tax time, rather than having these purchases interspersed with your personal credit card purchases.

Favorable Monthly Payments

The payments you make on your business line of credit will generally be much easier to manage than those from a traditional business loan. When you take out any kind of business loan, you will have a fixed monthly payment, and when the loan amount has been used up, your source of cash will be gone. By obtaining a business line of credit, you can pay back an amount of your choosing each month, and by doing so you will be refreshing the amount of available in your account. That outstanding amount will then be available for future borrowing when the occasion calls for it.

Seeking Lines of Credit for Your Business? 

If so, we may be able to help you at Simplicity Capital Finance. Contact us at your convenience with any inquiries you may have, or to apply for a business line of credit, which can help stabilize your business, and even provide you with an opportunity for real growth.