Business Lines of Credit 101
Did the last storm knock out power to your business, causing you to lose inventory? Or was there damage from storm debris?
Are you a seasonal business and need to keep cash flowing through the slower months?
Do you need cash to just keep things moving in your business?
As a business, it may become clear at some point that you’ll need access to funding without the wait. That’s where a business line of credit comes into play.
A business line of credit is a small business loan that is available to start-ups or existing businesses that need quick access to money. The funds can be used to cover unexpected expenses (damage from storms or other unforeseen events), or operational expenses, like purchasing supplies, expanding inventory, or making payroll.
Lines of credit can be established at many financial institutions. The amount the bank will let you borrow is based on your credit score, bank statements, tax returns, and profit and loss statements.
Lines of credit are capped to a specific amount, like a credit card, but many have lower interest rates than a business credit card. Once you pay back what you borrowed, you’ll have the full amount to borrow again.
A line of credit can help you maintain a good credit score, which allows you to get better loan terms should you seek financing in the future.
Rising Tide Community Loan Fund offers lines of credit to existing small businesses and startups in Carbon, Lehigh, Monroe, Northampton, and Upper Bucks Counties at a minimum of $3,000 and a maximum of $15,000.
The loan can be used for business growth, ongoing operating costs, increasing inventory, working capital, payroll expenses, and equipment/machinery.
Businesses interested in applying for a line of credit through the Rising Tide can apply on our website or download the application materials. If you need assistance, contact us at 484-893-1039 or by email at rtclf-marketing@caclv.org.
