Business Line of Credit
Business line of credit is offered by most banks and functions like a credit card for businesses. A business will have a predetermined amount of credit with a bank and can use it over time as needed for working or growth capital. Collateral is not usually required unless the business has poor credit when they apply. The amount issued for a business line of credit depends on the business's credit rating and cash flow.
In order to be approved for a business line of credit, a company must first demonstrate financial responsibility and an ability to repay. As with a credit card or loan, payments on a business line of credit are made monthly. Some banks will require interest-only payments for a period of time, in order to keep payments small.
However, the borrower can generally still pay on the principal as well or simply pay the remaining balance at any given time, without penalty, if he or she wishes to do so. A business line of credit will often have a variable interest rate, based on the prime rate (that offered to the bank's most credit-worthy clients).
iBank.com has business lines of credit available for all sizes of business. A borrower can choose between multiple types of credit. Registering with iBank.com puts the borrower in touch with local banks that can help them get the business lines of credit they need to keep cash flow steady and business running smoothly.
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