How can line of credit help you with cash flow?

As we mentioned earlier cash flow can cause serious financial troubles and is the most common reason why businesses fail. Some type of businesses like start-ups, construction, seasonal and contract businesses are more likely to have big fluctuations in cash flow. Nevertheless they have to find a way to pay the bills. There are expenses like rent and salaries that you have to pay every month but other unplanned expenses often emerge.

Making a financial plan and budget will help you better manage your expenses and avoid cash shortages. Cash flow projection is especially important for start-up businesses since they usually need time to generate positive cash flow. Sometimes even if you make money on paper you can ran out if it and be forced to close the doors of your business. It is very likely that you will find yourself in situation that you need more working capital. Alternative to standard bank loan is business line of credit.

Line of credit can help you solve your cash flow problems. It is a great way to manage unpredictable costs that could come up, providing a quick access to working capital whenever you need it. When your line of credit is approved you will get a loan with the maximum amount limit. The key benefit of line of credit is flexibility. Compared to standard business loan where you after approval get one lump sum up front, with line of credit you can draw as much cash as you need at the moment. No matter how many times you draw cash it is just important not to exceed your maximum amount limit. Line of credit is a a revolving line type of credit which means that you can borrow and repay repeatedly unlike with traditional loan where you have to apply again for extra credit. So next time when you have a cash shortage and need an extra working capital to avoid negative cash flow you can apply for a line of credit. One more extra benefit is that you don't pay interest rate until you actually borrow the money.

At Emry Capital we offer you quick access to revolving line, up to $250,000. Our rates are as low as 4.8% and applying won't affect your credit score. You just need to send your application online and we can approve it as fast as 20 minutes!

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