The type of product that best suits your business largely depends on whether capital is required, what repayment period is required, how much capital is required, and many other factors pertaining to the business. A loan suits a business that wishes to access conventional funding with a relatively larger amount of capital and a longer payback period.

A line of credit is best suited for any business that finds having repeated cash flow requirements. It can similarly be used for short-term requirements like salaries or any expense that is short-term in nature. A line of credit lets you borrow again and again, within the overall credit limit affirmed by the financial institution, and make ongoing payments for the sum that has been borrowed and other costs, if any, related to it.

For example, with a loan, the business is required to repay the total amount of the loan borrowed plus the interest charged on the loan or other fixed fees.

Depending on how much working capital your business is seeking, whether or not your business prefers to deal in terms and payments, or if your business seeks to obtain some form of privileges, it will determine whether your business should apply for a line credit or a business credit card.

Unlike casual credit cards, where the consumer has to request credit, a business credit card is instantly available and refunded up to a certain amount of credit. They also have fixed interest rates for charges made with the card, and monthly payments have also to be made. Some even have cash-back options. After making various purchases, a percentage, which varies depending on the credit card type, is given back to the customers. Perhaps a business credit card would be more helpful if your business would prefer to receive the following extra benefits.

A business line of credit can actually have a potentially higher credit limit depending on what the business is qualified for. Lines of credit allow daily, weekly, or monthly payments, and they come with term repayments that can be set on every draw. A line of credit is the best when you need cash more than several times or if you want to have some ready cash for anything. This product provides business owners means of flexible funding for working capital.

Applying for a business line of credit at EZ advance is simple, and our online application only takes minutes to complete. We’ll ask a few questions about your business and request additional information, such as the owner’s information, the last three months of bank statements, verification of identity, business information, and a business checking account. If approved, your business will have access to draw on the approved line of credit through our online client portal.

A line of credit functions by providing working capital to businesses whenever needed by the companies that request it. The business is supposed to pay an amount borrowed, interest, or any other charges that accompany the borrowed amount. Funds are debited from the business bank account through the process of automatic payments.

Amortization can range from 3-18 months and it may be reset each time the business accesses more funds through the line of credit.

The approved line of credit has the feature of enabling your business to obtain funds anytime it wants. It will then be transferred to the business bank account prepared in the business plan and analysis section. Business funds can then be used for the intended purpose of the business as you desire.

EZ advance offers a line of credit calculator that can help calculate what your business may qualify for and what estimated payments might be.