Business Lines of Credit
Complete and email applications
to info@brickellcapitalfinance.com
Types of Lines of Credit We Provide
Even without an immediate need, businesses establish lines of credit now. Being prepared is smart. Business owners know opportunities and/or issues can arise fast and have committed working capital allows you to be ready for any financial situation.
- Business Line of Credit
- Real Estate Line of Credit
- MCA Line of Credit
- Inventory Line of Credit
- Accounts Receivable Lines of Credit
- Security-Based Stock Line of Credit
Line of Credit Features & Benefits
- Loan Amounts From $2,500 to $750,000 With No Collateral Required
- Loan Amounts From $750,000 to $10 Million With Collateral ( Real Estate, Inventory, A/R or Stocks)
- 1st or 2nd Positions Line of Credit
- 24 to 72 Hour Approvals
- No Application or Maintenance Fees
- Access Your Lines of Credit 24/7
- A low Documentation and Streamlined Process
- Early Pay Off Options Available
- Less Than Perfect Credit
- Interest is Tax-Deductible
- Keeps You In Control of Your Business
- interest rates for a business line of credit lower then revenue-based loans
We Fund All Industries Except Non-Profits
It Pays to Be Ready and Prepared
Business conditions are constantly changing. Unexpected issues growth rises. Window of opportunity open. Are you prepared with these possibilities? Millions of business owners have learned that with different lines of credit from Brickell Capital Finance, they are ready. Our lines of credit features 24 hours access allowing business owner to draw funds as they needed, paying only on what they take! Are you ready to join the ranks of these smart, ready and prepared business owners?
Maybe you’ve thought about renovation, expanding or purchase new equipment. Why wait? With this type of financing, you have the freedom to draw funds as needed, paying only what you take out.
Business Lines of Credit – Is it the Right Financial Option?
Readily available cash is not a luxury that every business has access to, and the requirements and interest rate that come with borrowing a lump sum of money in a loan do not outweigh the benefits of having it. That’s when the business line of credit began.
This financing option has been the top favored amongst business owners of every industry. To sum it up, this is how a Business Line of Credit works?
Simply put, a line of credit is the limit set between a borrower and a lender that defines the maximum amount allotted for the borrower to draw money from. If a line of credit is chosen upon, a borrower can borrow funds at the time and amount of their discretion, provided that the limit isn’t exceeded. The funds borrowed are taken from your available credit, like a credit card.
Why Use a Line of Credit?
Because of the way it works, a business line of credit possesses inherent flexibility that plays to the favor of the borrower. In contrast to a regular loan where you might borrow more than what you need and end up paying for the interest incurred by the entire loan amount, the borrower can take however much they need, when they need it, and only pay interest for the amount they draw. Once the borrowers make their monthly payments, the credit limit resets, and they can once again enjoy drawing from their available credit.
This system is incredibly favorable to business owners of every stripe and net worth because it’s a quick and simple way to get cash in your hands when you need it, with none of the added hassles that can come with taking out a loan. If, for example, you need to put together a sum of money to fund your employees’ payroll during a dry spell that will probably last for months; or find yourself needing to promptly restock supplies constantly from a supplier that insists on cash-on-delivery, having a business line of credit ready would serve an immensely effective safety net.
Business lines of credit can seal gaps in the cash flow big and small and can give the boost you need when there’s a golden opportunity just out of reach.
Business Line of Credit vs. Business Loan
Borrowers should consider the difference between a business line of credit and a business loan to determine which of the two is the better fit for their business needs.
Business loans tend to have repayment plans stretched out as installments over long periods, making them the better choice if you are looking to undertake something that requires a large amount of funding.
Compared to business loans, business lines of credit have are paid over a 6 to 18 month period which makes it a good fit for short-term working capital such as payroll, rent, inventory, supplies, etc. So if you find yourself constantly needing access to short-term working capital, having a business line of credit to continuously draw funds from would better suit you.
Secured and Unsecured Business Lines of Credit
Business lines of credit can be chiefly classified into secured and unsecured lines of credit.
A secured line of credit makes use of collateral, i.e., valuable business assets such as Accounts Receivable, real estate or equipment to secure funds to use as capital. This presents a much less risky scenario for the lender, giving them an increased assurance that they’ll be reimbursed even if the borrower can’t pay them back in cash; hence, this makes them more comfortable approving larger credit limits and lower interest rates. A business owner with sufficient assets can make use of them to back the credit limit, giving him or her better rates and a higher maximum amount of funds to draw from.
An unsecured line of credit, on the other hand means that a business can qualify for a business line of credit without having to provide collateral. In order for a business to qualify, credit risk is determined using personal and business credit, length of time the business has been operating, type of industry and strength of the business sales.
Qualifying for Lines of Credit
Before approaching a lender to find out if you qualify, it’s best to consider the following factors first:
Sales – Lenders will look primarily at your revenue stream, to determine whether or not the borrower has the capacity to pay them back. They will do this by verifying monthly sales revenue through business bank statements for the last 90 days. Lenders would like to see consistent sales each month, multiple deposits and a healthy ending balance at the end of each month.
Credit Score – While it matters a lot to lenders is that you have the capacity to pay them back, it matters just as much to know the borrower is likely to pay them back. For business lines of credit, a credit score of 600 and up makes it easier to gain approval and get better deals.
Business History – For this factor, a business of at least one year old is often the minimum operation time to qualify. Younger businesses can have a harder time getting good deals or even getting approved for a business line of credit, so online lenders are their best bet.
Once the borrower considered the above factors, it’s time to get into the qualifying procedure and requirements to applying for a small business line of credit. These vary mostly based on the duration of the repayment terms that you wish to adhere to.
Apply for An Unsecured Lines of Credit
This Line of Credit have repayment terms that are between 6 – 18 months. This means that every time the borrower draws from their line, they will select a term to pay it back between 6-18 months. Some borrowers want to save money on interest and may select a 6-month term or some borrowers may want a lower monthly payment and may select a 12 or 18 month terms. For this type of credit line, online lenders are a better choice than banks, since they have a much shorter application process and allows you to tap into the credit line on-demand. The requirements aren’t as rigorous as that of lines of credit offered by banks.
If this is the type of credit line you wish to apply for, these are the steps you will have to take:
1) Submit an application – Simply contact us to apply. This will take anywhere from five to 15 minutes.
2) Documentation – We do not ask for much information. For the most part, an application, a drivers license and the last three months of business bank statements are all that are needed.
3) Wait for the decision – Most of our lenders take a mere 24 hours to two business days to get back with a decision, significantly expediting the borrowing process and making your funds available much more quickly.
Are Lines of Credit Tax-Deductible?
In general, purchases made with funds from a business line of credit may be tax-deductible. The interest paid on a business line of credit may also be tax-deductible. Please consult with a tax accountant prior to taking a deduction on your business tax returns.
How Will a Line of Credit Affect Credit Score?
Business line of credit will typically not report on your personal credit profile because they are not a personal credit line. Only the credit inquiry at the time the application is submitted will show on a borrower’s personal credit but since this is a business line, the line itself will not report on a borrower’s personal credit.
Business lines of credit are uniquely convenient and flexible because they provide financing when and where it is needed, with interest rates commensurate to how much credit is used. To add this handy option to your repertoire of financial tools, it’s important to keep your financial health and documents in check and have a good knowledge of the rates and offers that your chosen bank or online lender offers. Transparency about financials and a thriving presence on the internet are also widely favored amongst lenders.
Business Line of Credit vs. Business Loan
Borrowers should consider the difference between a business line of credit and a business loan to determine which of the two is the better fit for their business needs.
Business loans tend to have repayment plans stretched out as installments over long periods, making them the better choice if you are looking to undertake something that requires a large amount of funding.
Compared to business loans, business lines of credit have been paid over a 6 to 18 month period which makes it a good fit for short-term working capital such as payroll, rent, inventory, supplies, etc. So if you find yourself constantly needing access to short-term working capital, having a business line of credit to continuously draw funds from would better suit you.
Secured and Unsecured Business Lines of Credit
Business lines of credit can be chiefly classified into secured and unsecured lines of credit.
A secured line of credit makes use of collateral, i.e., valuable business assets such as Accounts Receivable, real estate, or equipment to secure funds to use as capital. This presents a much less risky scenario for the lender, giving them an increased assurance that they’ll be reimbursed even if the borrower can’t pay them back in cash; hence, this makes them more comfortable approving larger credit limits and lower interest rates. A business owner with sufficient assets can make use of them to back the credit limit, giving him or her better rates and a higher maximum amount of funds to draw from.
An unsecured line of credit, on the other hand, means that a business can qualify for a business line of credit without having to provide collateral. In order for a business to qualify, credit risk is determined using personal and business credit, length of time the business has been operating, type of industry, and strength of the business sales.
Qualifying for a Business Line of Credit
Before approaching a lender to find out if you qualify, it’s best to consider the following factors first:
Sales – Lenders will look primarily at your revenue stream, to determine whether or not the borrower has the capacity to pay them back. They will do this by verifying monthly sales revenue through business bank statements for the last 90 days. Lenders would like to see consistent sales each month, multiple deposits and a healthy ending balance at the end of each month.
Credit Score – While it matters a lot to lenders is that you have the capacity to pay them back, it matters just as much to know the borrower is likely to pay them back. For business lines of credit, a credit score of 600 and up makes it easier to gain approval and get better deals.
Business history – For this factor, a business of at least one year old is often the minimum operation time to qualify. Younger businesses can have a harder time getting good deals or even getting approved for a business line of credit, so online lenders are their best bet.
Once the borrower considered the above factors, it’s time to get into the qualifying procedure and requirements to applying for a business line of credit. These vary mostly based on the duration of the repayment terms that you wish to adhere to.
Members of Florida Restaurant & Lodging Association and Florida Health Care Association as well as all other association members in most industries.
We look forward to serving you by providing competitive rates through our best-in-class lenders of lines of credit.
The Flexible Solutions For a Business Lines of Credit
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