Get easy access to cash when you need it. ROI Business Funding facilitates business lines of credit for your operational needs so that you have ready access to cash when you need it. Funds can be used for a variety of purposes, from meeting short-term cash flow needs and adding staff to purchasing inventory.
Business Lines of Credit can help bridge the gap during seasonal lulls and other lean periods. A business line of credit can ensure that you always have the capital you need, when you need it. If you’ve ever taken out a home equity line of credit, you know how a business line of credit works. Lines of credit can be unsecured, or secured by collateral such as inventory or equipment. Lines of credit can be used for many purposes, such as working capital. Advantages of these types of loans: You don’t make payments or pay interest until you tap into the funds. A “revolving” line of credit can be tapped over and over, without having to reapply. And as long as you make payments on time, interest rates are generally lower than with conventional term loans.
Being prepared is smart, and business owners are establishing cash credit lines now, even without immediate need. As a small business owner, you know opportunities and/or issues can arise quickly and having access to a cash credit line allow you to be ready for the unexpected. A cash credit line gives you the freedom and flexibility to act fast when the window of opportunity opens.
At ROI Business Funding, we can help you get easy access to cash credit line when you need it. You’ll have the option to draw funds as they’re needed, paying interest only on the money you take. Acquiring a cash credit line can directly improve your bottom line, and funds can be used for a various purposes, from bridging receivables gaps, meeting short-term cash flow needs, taking advantage of bulk purchase discounts, launching marketing campaigns to hiring additional staff.
In order to receive a business line of credit loan, you must have a history of profitable operations and demonstrate a positive cash flow. Maximum lines of credits are determined on a company’s revenue and cash flow in the past, the present and in the future. Similar to credit cards, borrowers are approved for a designated amount of money and can borrow as much as they want as long as they repay their debts under the terms of the loan. Acquiring a business line of credit can be a game-changer and is a prudent financing option.
Cushion Seasonal Sales Lows
Businesses with varying revenue streams need capital during slow periods to operate efficiently. For instance, retail stores flourish and generate much of their revenue during the holiday season, but need to stay financially afloat in the slower periods of the year. Predicting the degree of a seasonal downswing is difficult, making ‘term loans’ an impractical business financing solution. Fortunately, with a business line of credit, borrowers only have to pay interest on the amount used.
Ease Your Payment Cycle Cash Crunch
Businesses with long accounts receivables often experience cash shortages that impede business growth and depress service standards. A cash infusion can help solve these issues. For example, in the IT staffing industry, companies need to spend a lot of time (sometimes up to 30 days) and money upfront to recruit, train and deploy personnel. Generally, companies do not receive payment for 90 to 120 days. The company is forced to cut costs, like training programs, affecting the overall service level. Lines of credit backed by accounts receivables — also known as accounts receivables financing or accounts receivables factoring — can fund up to 90 percent of the receivables, depending on the creditworthiness of the business’s customer base.
Cost Savings Associated
Entrepreneurs can use business expansion loans to take advantage of discounts available through bulk purchases or cash advances. For example, wholesale distributors of wireless pre-paid phone cards need cash for buying minutes in bulk from telecom companies. Paying upfront can earn the distribution company a 3 to 5 percent discount on the cards. The need for working capital arises when retail customers pay the distributors over a period of 14 to 21 days.
Using a business line of credit as working capital can directly improve a company’s bottom-line. Contact us at ROI Business Funding today and our dedicated Funding Specialists will facilitate business lines of credit for your business operational needs so that you have ready access to cash whenever you need it.