Business line of credit. A business credit line is certainly an asset to a company; in fact, many businesses cannot function without it. But what type of line of credit should you consider?
You have options; you can talk to your bank about a traditional line of credit. However, a bank line of credit may come with a whole list of conditions that can hurt the business should the company experience a temporary financial setback.
Our option is a ledgered line of credit, based on your company's accounts receivable. The business ledgered line provides the advantages of a traditional bank line, free from the constraints that could impede a company's growth if a financial covenant fails to meet the latest financial review. A ledgered line of credit has no such restrictions.
Here are some of the advantages
- No audit requirements
- No restrictive financial requirements
- No restrictive covenants
- No financial ratio requirements
- No concentration restrictions
- No long application
- Plus other benefits
This business line of credit is a beneficial option for companies currently using asset-based lending or a traditional bank line. It allows them to escape the strict requirements while maintaining the benefits of a line of credit, such as competitive pricing. With the company's accounts receivable, the line is flexible and secure. Unlike a traditional line of credit, no audits are required, and there are no restrictive covenants concerning ratios, concentration, etc.
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