10 Lines Of Credit

The Age Of The Company Is Important

10 Business Lines of Credit You Can Get Right Now

  • Did you know that you can get a business line of credit with the following:
  • No income documentation
  • Credit issues
  • A startup business
  • No collateral
  • Previous credit denial
  • With SBA lines of credit, you can get low-interest rates with great terms through multiple different options
  • Most entrepreneurs are unaware of these methods; however, you may qualify for these options right now.

The Three C’s Cash Acquisition Formula

  • Before you can obtain a business line of credit, you first need to understand the three C’s
  • cash acquisition formula
  • There are three main things that lenders and credit issuers look at to determine if your
  • business qualifies for a loan or line of credit.
  • These three qualifiers include
  • Cash flow
  • Credit
  • Collateral
  • +AGE
  • The great thing about this formula is that most loans like SBA require that you have all
  • three factors in good standing.
  • However, there are many alternative lending options available that don’t require having
  • all three C’s to qualify for approval.
  • Even if your business has none of these strengths, it is still possible to gain a business line
  • of credit.

Business Lines of Credit for Businesses with Good Personal Credit

Credit Line Hybrid
  • With Credit Line Hybrid, you can get approved for as much as $150,000 in financing
  • with 0% rates for up to 18 months.
  • You are also able to pull the cash out of these lines of credit at 0%.
  • This has never been done before on any other program than Credit Line Hybrid.
  • You can get approved for Credit Line Hybrid as a startup business with no doc, no tax
  • returns, and no collateral.
  • The only qualification required for approval is a well-established business credit profile
  • with a FICO score of 680 or higher.
  • Alternatively, you can get a personal guarantor for approval.
  • For example, a friend or family member can act as a private investor if they are willing
  • for you to use their credit for qualification.
  • Many lines of credit through the credit line hybrid program report to the business credit
  • reporting agencies.
  • Even if you use someone else’s credit, you can still build your business credit.
  • The only time a private investor can get hurt is if you were to default on that line of
  • credit.
  • Credit Line Hybrid is the best way to get the most money for your business, especially if
  • you are a startup and want no documentation financing.

Business Lines of Credit for Businesses with Good Cash Flow

Fundbox & BlueVine
  • With these lines of credit, you can get approved for $100,000 to $150,000 in funding.
  • Fundbox and BlueVine are not based on personal credit.
  • BlueVine has a 620 minimum FICO score requirement while Fundbox has no minimum
  • FICO score requirement.
  • They give you 6 to 12 months to pay back the money, and you will pay as little as a half
  • percent of interest for every week the money is outstanding.
  • If you are borrowing the money for a longer period, it can be a little more expensive than
  • a short period.
  • Both lines of credit use artificial intelligence to underwrite your application, so you don’t
  • have to supply all that burdensome documentation you do with so many other business
  • lines of credit.
  • These lines of credit plug right into your bank account and do the underwriting there.
  • Depending on how much you are processing every month in your bank account, and how
  • much you manage the bank account, will determine how much you get approved for.

Merchant Line of Credit

  • Merchant lines of credit are not based on personal credit.
  • You can get approved for as much as $100,000 based on what you are processing through
  • your merchant accounts every month.
  • With this line of credit, if you are processing $100,000 a month now in your merchant
  • accounts, you can get approved for as much as $100,000.
  • Merchant lines of credit report to Experian Commercial and it requires no personal
  • guarantee.
  • All you need to do is get approved have consistent merchant account transactions.
  • If you meet this basic requirement, there is a very good chance you will get approved.

Amazon

  • Amazon has lines of credit through programs such as
  • Marcus
  • Bank of America
  • Corporate credit cards
  • These do not require a personal guarantee or a personal credit check.
  • If you are selling on Amazon, you want to look in Amazon seller central because these have three great funding options, including a great line of credit, a great credit card, and a loan.

Business Lines of Credit for Businesses with Good Collateral

401K Financing

  • With 401K financing, you can borrow as much as 100% of the value of your 401K if your 401K is worth $25,000 or more.
  • This is one of the most popular programs for partners that are starting a business together.
  • There are no tax penalties because it is based on IRS-proven strategies.
  • You can get a low interest 5% business line of credit, leveraging your 401K as collateral

Securities Financing

  • If you don’t have a 401K or IRA, but you have stocks or bonds, you should consider securities financing.
  • With securities financing, you can get a 5% interest credit line borrowing against your stocks and bonds.
  • Securities financing allows you to still earn interest on your stocks and bonds.
  • You are still earning interest like normal, but you are leveraging those as collateral to get a low-interest rate business line of credit.
  • You can borrow as much as 90% of the value of your stocks and bonds.
  • Even if you don’t have a 401K, IRA stocks, or bonds, you can still tap into someone else’s and use theirs as collateral to get your business financing.

Inventory Financing

  • With inventory financing, you can get a line of credit for as much as 50% of the value of your inventory.
  • Many business owners put a lot of their money into inventory and don’t have cash on hand when they need it.
  • With this program, you can leverage your credit or inventory to get a credit line, or you can use a credit line to get the credit you need, and then the collateral is the inventory itself.
  • You can borrow as much as 50% of the value of that inventory as long as you have $500,000 in inventory or more.

Business Lines of Credit for Businesses with All Three C’s

  • If your business happens to have good personal credit, collateral, and cash flow, that’s when you want to apply for an SBA CAPline.
  • SBA CAPline is a 7a program that you can use for multiple different purposes.
  • There are four different types of programs that you can use for multiple different purposes, including
  • Seasonal businesses
  • Contractors
  • Builders
  • Working capital.
  • With working capital, you can get up to $5 million with a low-interest rate for general business purposes, whether it be for cash flow, marketing, or expansion.
  • SBA CAPlines is one of the highest limit lowest interest rate credit lines.