Getting a business line of credit is a great way for businesses to get the money that they need to run their business whenever they need business loans. Line of credit applications are easy to fill out and if the bank approves your application, you know exactly how much money you can borrow.

A small business line of credit can help in the following ways:

1. It makes you feel more secure. Even if you apply for business line of credit, you do not have to use the money. However, you can feel more secure knowing that if an emergency or unexpected expenses arises, you will be able to get the money you need without a hassle.

2. Unlike traditional business loans, line of credit loans are revolving credit payments, not installment payments. This means that you can pay a smaller minimum amount during the months that you have less money.

3. You can save money on interest payments. Because you only take out the amount of money you need from your small business lines of credit when you need it, you do not have to pay interest on money that you are not using.

Action Steps
The best contacts and resources to help you get it done

Apply for an unsecured business line of credit to feel more secure

When you have a line of credit, you know that you can get money as you need it, without paying interest on money that you are not using. Unsecured loans are harder to get because a lending company needs to feel confident in your ability to repay the loan without any collateral. However, an unsecured loan ensures that your property is not at risk if you cannot make payments.

I recommend: An unsecured line of credit is particularly helpful when you first start your business. After all, you don't have much collateral or income at this stage. EZUnsecured.com specializes in finding lines of credit for new companies. Wall Street Capital Financing also offers unsecured lines of credit to business owners.

Get a business credit line through your bank

Many banks also offer lines of credit to small business owners. The application is easy and you can soon learn how much money you are able to borrow over a certain period of time. This is ideal for new business owners.

I recommend: Both US Bank and Commerce Bank offer lines of credit to business owners. However, many other banks offer this service, so you may want to check with the bank that you currently do business with.

Use credit cards as an unsecured business line of credit

Credit cards are an additional type of credit line that business owners can put to good use. You will know your limit immediately. You can make purchases as necessary and pay off the balance later.

I recommend: You can apply for a business credit card directly through a bank, such as Wells Fargo. Alternatively, you can compare a variety of credit card offers through a site like CreditCards.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that you do have to pay interest on your business credit line if you don't repay the money within a certain time frame. Avoid interest costs by paying your balance in a timely manner.