Business Line of Credit Qualifications
At a minimum, you’ll need at least six months in business and $25,000 in annual revenue to qualify. Borrowers most likely will need a credit score of 500 or higher.
Lines of credit can be useful for emergency situations when you need more money than your bank account has.
When you apply, you’ll determine how much credit you need. Limits depend on the lender but range from $2,000 to $250,000 typically. Ask for a higher limit than needed as long as you don’t overspend. If more funds are needed after the initial line, request an increase.
Lenders and Loan Limits
There are many lenders that offer lines of credit. Amex allows accessing up to $250,000 for short term needs with low rates. PNC may be better for those needing a higher limit, as you can qualify for up to $3 million. Shopping around is key.
Benefits of a Business Line of Credit
A line of credit is flexible financing that businesses can use for whatever they want. You only pay interest on the portion used, making them affordable.
To improve your chances, work on building your credit score to above 680 FICO. Having collateral that can back it will also help approval likelihood. Your business should usually be established for at least six months with online lenders or two years for traditional ones.