A $25,000 business line of credit may be what you need to get your business off the ground. Most business owners don't have the money they need to get started, so they typically apply for a $25000 business startup loan. However, a business line of credit may be the smarter choice.

The benefits of having a small business credit line are:

1. You will feel secure knowing that the money is there when you need it. If you don't know where you're going to get the money you need, you can feel a lot of stress. Even just a $10,000 business line of credit will give you the security you need.

2. You can save money by not taking out all of the money at once. You'll only pay interest on the money when you use it. Contrarily, if you have a $25,000 business loan, you have to pay interest on the entire amount.

3. A business line of credit is revolving. This means that you don't have to make large payments every month. If you find that you are short on cash one month, you can pay the minimum amount. This is great for new business owners.

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

Apply for a $25,000 line of credit through your bank

Most major banks offer business lines of credit to local business owners. This is one of the easiest ways to get the money you need. After filling out a simple application, you will know how much money the bank is willing to lend you over a certain time frame.

I recommend: Chevy Chase Bank offers a number of different financing options for small business owners, including small business lines of credit. Wells Fargo can also give you a line of credit up to $100,000.

Choose a bank that offers an unsecured business line of credit

As a new business owner, you may not have anything that you can use as collateral. This can present a host of problems. Try to search out companies that specialize in offering unsecured business lines of credit.

I recommend: A short application at EZUnsecured.com can get you the line of credit you need to run your business. Guaranty Bank also offers a small business unsecured line of credit. Remember that an unsecured line of credit is likely to have a higher interest rate than secured lines of credit.

Get a business credit line through a credit card

A line of credit through the bank can be cumbersome because you have to wait for the bank to transfer money into your account. A credit card, on the other hand, gives you quick and easy access to your line of credit.

I recommend: Capital One has a number of cards that are suitable for small business owners. Many offer a rewards program. At CreditCards.com, you can compare the business credit cards from a variety of banks.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It's tempting to take out more money than you need from your business line of credit. Doing so, however, will cost you more money in interest payments. Try to take out only the money that you need, when you need it.