Are you a small business owner, looking for business funding options for the growth of the business? You may want to consider a business line of credit for many reasons. The market is filled with many options when it comes to a business line of credit. As a small business owner, you should study all possible options of business line of credit, compare them and apply for the most suitable one.
Here are some of the possible line of credit options:
- Traditional bank line of credit: As per a recent research report, although a traditional bank line of credit has been a common business funding option, it comes with many difficulties. The traditional line of credit has become one of the most time-consuming business funding options as far as its approval process is concerned. Traditional lines of credit need a substantial amount of documents to support a lot of things such as business and personal tax returns, financials and registration information. The demand for a traditional line of credits is decreasing due to the availability of other fast-process funding options.
- Unsecured and a secured line of credit: Unsecured business lines of credit don’t require collateral or a credit score. Whereas, to avail a secured line of credit, you need to maintain a good credit score. For many reasons, the demand for an unsecured line of credit is increasing.
- Business and personal line of credit: A business line of credit might or might not be secured against business assets. Whereas, a personal credit line is always secured against a personal property, for instance, a house. A common type of personal line of credit is a home equity line of credit. While applying for a person or a business line of credit, it is important to check its differences.
- Real estate line of credit: If you are planning to expand your business buying a real estate property or if you are a real estate developer, you can go ahead to avail a real estate line of credit that has many advantages. Unlike the home equity line of credit, the real estate line of credit requires no financial statements, collateral, and appraisals.
- Alternative lenders: With the introduction of machine learning and big data analytics, there is a new way of financial technology. Companies are able to ease their pain of business funding options. Now, small and medium businesses have alternatives among multiple lenders to avail business funding. In many of the newly introduced business funding options, there is the least paperwork and quick approvals. Alternative lenders offer benefits such as less paperwork, easy eligibility, easy application and approval, and many funding options.