There are many kinds of business financing available on the market today. Most businesses are familiar with the standard Business Term Loan, but the lesser known Business Line of Credit can also be a powerful tool for growing or struggling businesses.
Business Lines of Credit give you access to funds while avoiding many of the inconveniences and costs of other business financing options. The Business Line of Credit is versatile, it can be used to cover emergency expenses when calamity strikes, to fund an unexpected opportunity for growth, or even just used as working capital to fund your daily operations during a slow month or otherwise.
A Business Line of Credit works much like a credit card. Your business is assigned a borrowing limit with terms and an interest rate. You can borrow from this line of credit whenever you need, up to the limit. There is a minimum payment you will be required to make on any balance you carry, along with interest. You only pay for what you borrow, and when your balance is paid in full, your borrowing limit is usually restored. This is called a revolving line of credit, and it means your business will have continuous access to the borrowing limit without having to reapply.
Businesses with steady access to credit are able to capitalize on spur of the moment opportunities that come their way, and pay for any surprise expenses without destabilizing their cashflow.
After you draw money from your Business Line of Credit, minimum payments will be due on a weekly or monthly basis, until you repay what you borrowed. Your line of credit will have a repayment term for when the full balance is due. If your balance is paid on time, your credit line is usually replenished.
You can always pay off your balance early to save money on interest, and so long as you remain in good standing, your Business Line of Credit will be accessible to you indefinitely.
MG Advance offers Business Lines of Credit with borrowing limits of up to $250,000, term lengths of up to 18 months, and interest rates starting at 8%. There may be an additional fee between 1%-3% every time you draw from the credit line.
Collateral is not usually required to secure a Business Line of Credit, unless you are applying for a very large credit limit.
The flexible nature of Business Lines of Credit means you only pay interest on funds that you draw. You can pay back the money you spend as soon as works best for you, providing it is within the set term and you keep up with your minimum payments. With other types of funding, like Business Term Loans, you begin making fixed payments with interest as soon as you receive the money, regardless of how much of it you spend.
Business Lines of Credit are also flexible when it comes to their many uses. Once you are approved for a Business Line of Credit, you will have access to funds whenever you need, no matter what the reason. This means that unexpected problems down the road can easily be dealt with, and business opportunities that spring up along the way will not pass you by. For example if you own a retail business, and one of your products is flying off the shelves after a particularly successful marketing initiative, a Business Line of Credit will allow you to restock your inventory immediately, so you do not miss out on any sales. Later on in the year, you might experience a sudden drop in your sales, in which case you could use your Business Line of Credit to fill in the gaps where your cash flow falls short, until sales pick up again. A Business Line of Credit will protect you from unforeseen pitfalls and prepare you for unexpected opportunities.
If you apply for a Business Line of Credit and you are approved, the moment your business needs access to capital you are covered. There is no need to waste time shopping around for business financing and filling out lengthy applications. Your Business Line of Credit is already available to you for any scenario your business might encounter.
Business Lines of Credit have much larger borrowing limits than credit cards usually do, and your interest rate will not increase when you approach your borrowing limit like it does with most credit cards. Borrowing close to your limit with a credit card can also damage your credit score, and this is not the case with Business Lines of Credit.
Depending on your desired borrowing limit, the requirements for a Business Line of Credit can be among the easiest to qualify for on the market, and applications are approved in as few as 1-3 business days.
The advantages of Business Lines of Credit are somewhat reserved for businesses with strong financials and excellent credit scores. Weaker businesses may still be approved, but they will not have access to large borrowing amounts and favorable interest rates.
If you are not already approved for a Business Line of Credit and your business runs into trouble, it is unlikely you will access large borrowing limits and low interest rates. The best time to apply for a Business Line of Credit is when your cashflow is strong, but applying for business financing is usually the last thing on a business owners mind when things are going well.
Approved businesses generally met the following criteria:
To receive a fast decision, simply provide some basic information about your business. Our online application is quick and easy to complete, allowing you to get started on securing the funding you need.
At MG Advance, we pride ourselves on delivering a speedy and efficient funding experience for your business needs. Our team of seasoned professionals will work tirelessly to match you with the perfect funding solution that aligns with your specific requirements and helps you achieve your goals in record time.
At MG Advance, we understand the importance of timely funding for the growth and success of your business. Our streamlined application process enables you to receive approval and transfer of funds within a matter of hours. Let us help you get the capital you need to take your business to the next level.
The application process is swift and easy, taking only a few minutes to complete, and funds can be deposited into your bank account within 1 business day from approval. Here is how to get started: Before submitting your application, take the time to evaluate whether the funding program aligns with your business needs. Consider if the funds will meet your desired outcome and if the repayment schedule works with your cash flow. Carefully determine the optimal amount of funding that will best benefit your business.
Here is what you will need to submit with your application:
Getting started with the application process is easy. You can either call us or complete our brief online form. We will ask for some essential information about your business and the funding amount you require. With this information, we can quickly evaluate your needs and get you on the path to securing the financing you need.
After submitting your application, our representative will guide you through the next steps. Have all necessary documents ready as outlined in Step 2. We'll review your qualifications and explain repayment structure, interest rates, and terms. You'll have a clear understanding of what to expect during repayment and eliminate any surprises. If you agree, complete the final application and submit supporting documents.
After approval, expect to receive a confirmation within 24 hours and the funds to be deposited in your bank account within 24hours.
At MG Advance, we understand that not every application for a merchant cash advance will be approved. In some cases, a business's cash flow may be insufficient at the time of application, or their sales may not meet the required minimum over the past three months. In the event that your application is declined, we will work with you to explore alternative financing options that may better suit your business needs.
Our goal is to help you find the best solution for your unique situation, and we have a team of financial experts who can guide you through the process. Our commitment to our clients is to provide transparent and personalized guidance, so you can make informed decisions that will help your business succeed.
