Frequently Asked Questions
What is the difference between a secured and unsecured line of credit?
A secured line of credit requires collateral, which can lower your interest rates. An unsecured line does not require collateral but may have higher rates and stricter qualification criteria.
Can I use a LOC for any business expense?
Yes, you can use your LOC for a variety of short-term expenses, including inventory purchases, marketing campaigns, payroll, and more.
How much can I borrow with a Business Line of Credit?
Your credit limit will depend on various factors, including your business’s financial health, credit score, and collateral offered.
What documents do I need to apply for a Business Line of Credit?
To apply for a Business Line of Credit, you typically need to provide financial statements, tax returns, a business plan, and details about your business’s revenue and expenses. Having a clear understanding of how you plan to use the LOC can also strengthen your application.