Business lines of credit are the ultimate option for financial flexibility. They offer businesses access to funds at the level of a traditional loan with the flexibility and repayment cycle of a credit card. With business lines of credit, you are to gain access to up to $250,000 depending on your business’ income and financial statements, with the ability to repay and reuse the money as many times as you would like as long as your make your agreed-upon monthly payments and don’t exceed the credit limit.

Lines of credit tend to fall within two categories: secured and unsecured. Secured lines are lines of credits that are backed by collateral. Collateral can be real estate property, equipment or even inventory and is foreclosed on if the line is not paid on time. Unsecured lines do not require business collateral but often do demand personal guarantees. In the event that the line of credit isn’t paid back, the financial institution can personally sue the business owner. And it’s safe to say, the higher the line, the more collateral required.

Our Top Picks

For business lines of credit up to $100,000, we recommend OnDeck. They offer quick funding, often same day with interests rates falling between 11.00% and 61.90% based on your financial situation. To qualify you to need a minimum credit score of 600, to have been in business for at least on year, have at least $100,000 in revenue, and have not filed for bankruptcy within the past two years. One of the drawbacks with this online lender is that the fees are fixed so if you repay your balance early, won’t save any money on interest.

Our pick for businesses seeking a line of credit up to $250,000 is BlueVine. They offer one of the quickest turnarounds, as quick as 12 hours, with interest rates ranging from 15.00% to 78.00%. BlueVine offers two options for short-term financing: 6 months and 12 months. For either option, you have to have a minimum credit score of 600, have been in business for at least 6 months and have yearly revenue of at least $120,000. It’s important to note that because this a considered a short-term financing option, monthly repayment amounts will be higher than if you were getting a long-term loan or other lines of credit.

While lines of credit are an amazing tool to help businesses grow, it’s important to make sure they are a good financial option for you and your business. Business credit cards often come with the same flexibility as lines of credit with the added bonus of rewards and business perks and discounts.

Contact Fortis Funding today to learn about our unsecured lines of credit for new and existing businesses.