What is a Line of Credit for Small Business?
A small business line of credit online gives you access to the working capital you need when you need it without the obligations of a fixed term loan. With a business line of credit, you can draw as much or as little as you need as long as you don’t exceed your credit limit. You have the flexibility to draw and repay as many times as you see fit, as long as your business is performing the same way or better than it was when your line of credit was approved. You’ll only pay a fee on the portion of money you draw.
Apply for alternative business credit from Venture Plus Partners Capital® online and get up to $500,000 in funding in just 24 hours.
Small business line of credit online rates
Most types of alternative business funding use something called a factor rate instead of a traditional interest rate. Factor rates are simple decimal figures that show how much “extra” you will owe on the original amount of the loan. Your factor rate is determined based on your risk assessment. Most factor rates fall between 1.1 and 1.5.
Who Should Apply for a Small Business Line of Credit Online?
Small business lines of credit are ideal for:
Purchasing new inventory
Opening a new location
Upgrading or replacing equipment and technology
Bolstering your small business’s marketing
Filling in cash flow gaps during slow seasons or between projects
Lines of credit for small businesses can benefit attorneys, medical practices, construction companies, restaurants, retailers, and more. No matter what industry you operate in, our expert Funding Advisors will work closely with you to select the best funding option to help you achieve your business’s goals without sacrificing cash flow.
How Small Business Lines of Credit Online Work
1
Apply
Gather 3 months of bank statements and other records. For faster approval, grant us secure access to your bank account’s transactional data.
2
Choose Funding
A Funding Advisor will reach out to you within 1 hour (during regular business hours) to complete your application & discuss your funding options.
3
Get Funded
Once you and your Funding Advisor determine what funding option works for your business, your funds can be approved and deposited within 24 hours.
4
Set Repayment
Payments will be automatically deducted from your business’s daily or weekly debit and credit card sales. Payment amounts will be based on your sales.
How to Use a Line of Credit for Small Business
There are no restrictions on how lines of credit for small business can be used. These loans are typically best used to:
Fill in cash flow gaps caused by seasonal slowdowns or unexpected expenses
Fund growth strategies, new equipment, and other costly purchases that have a strong ROI
Finance an expansion, merger, or acquisition
Take advantage of seasonal business opportunities such as purchasing inventory in bulk
Small Business Lines of Credit Online Qualification Requirements
It’s easy to apply for a small business line of credit online from Venture Plus Partners Capital®. Approval is based on your business’s revenue and cash flow, not just your credit score. Here are some of the factors we consider:
Business revenue
Cash flow
Vendor payment history
Years in business
Public records
Personal credit
Business Line of Credit Q&A
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Can I get a merchant cash advance with bad credit?Yes, you may be able to get a merchant cash advance with bad credit if your business has strong cash flow. Alternative lenders like Venture Plus Partners Capital have lower credit score requirements, typically starting around 550. Merchant cash advances, invoice factoring, and other alternative small business funding are ideal options for businesses with low credit scores.
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Can I get a merchant cash advance with no bank statements?Some alternative lenders may approve a merchant cash advance with no bank statements, but you can expect much higher rates. Venture Plus Partners Capital requires three months of bank statements and other financial records. What type of business qualifies for an MCA?
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What type of business qualifies for an MCA?Any business that accepts credit and debit card payments may benefit from a merchant cash advance, regardless of industry. Our team of knowledgeable Funding Advisors will work with you to assess your eligibility.
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How do I qualify for a merchant cash advance?Every business is unique. It’s always best to speak with one of our Funding Advisors to review your circumstances and assess your eligibility. In general, we look for consistent revenue with minimum monthly receipts of $7,500 or more, and 6+ months in business. We know that credit scores don’t tell the whole story, so we also consider the overall growth potential of your business. Are there restrictions for how the funding is used? What is the interest rate on a merchant cash advance?
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Are there restrictions for how the funding is used?We do not restrict how you can use your merchant cash advance funding. We believe small business owners understand best what they need to do to grow their businesses, so while our team may provide some coaching, the final decision is yours. What is the interest rate on a merchant cash advance?
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What is the interest rate on a merchant cash advance?A merchant cash advance does not have an interest rate because it is not technically a loan. An MCA is an advance against future sales. The cost of the advance is called a “factor rate”, and it varies based on each business.