Straight line to success
By: Rachel Covington
A line of credit is flexible, revolving, short-term capital that aids in providing funding solutions for your business. Think of it as a credit card strictly for the business, the only difference being you can access cash.
What is it?
A line of credit isn’t like a typical cash advance or term loan. The funds are drawn directly into your business bank account every time you pull. When you need funds, you may draw at any time within the term. You only pay interest on what you draw and have the option of paying your balance earlier at any time with no penalty. There is no set rule on when you must draw so you can draw funds once a month, once a year or even once a day. Payments are made weekly or monthly and aid in building your business credit. You’ll have access to your line 24/7.
Line of credit eligibility is based on annual revenue, time in business and personal credit. We require a minimum gross annual revenue of $120,000 per year for all businesses and at least 1 year in business. Personal credit scores must not fall short of 600 in order to qualify for a business line of credit.
What can I use it for?
A business line of credit can be an extremely beneficial tool for business owners. Use your line of credit for various purposes including marketing, remodeling, gaps in cashflow or sales due to seasonality, unexpected expenses, inventory and much more. A business line of credit is one of the most convenient types of financing Accel Capital offers.