Secured Loans Can Help Your Business Handle Unexpected Needs
Cash flow is frequently an issue for small businesses, such as for ordering inventory and having cash available for day-to-day operations. A revolving line of credit, secured by business assets, makes funds available when the need arises. Every small business and non-profit should have a line of credit in place for opportunities, emergencies or to cover inadvertent overdrafts.
Having strong credit is a business essential, but it takes time to establish. Secured loans give your company the opportunity to borrow based on assets, while establishing credit at the same time.
A Secured Line of Credit is Revolving
This method of borrowing works similar to a credit card. The amount you’ll be able to borrow is determined in advance, based on the assets you have in place. Funds are available whenever you need them, and can help your company manage unexpected expenses. Whereas traditional forms of lending have a predetermined number of flat payments, the amount due towards a secured line of credit will vary based on how much is owed. The date of the final payment is also not set, as you’re able to draw funds at almost any time. As you pay off any balances you accrue, you’re able immediately draw upon them again.
You Can Use Secured Loans to Pay for Almost Anything
Because the amount of funds available are determined in advance, how you choose to spend the money is up to you. You can use it to help cover an emergency expense, like when equipment fails or if you need to boost inventory quickly. The options are endless, but the most important thing is that the power to handle issues as they come up remains in your hands.
There are Several Benefits to Going with a Secured Line of Credit
Having money available when you need it most is only one advantage to having a secured line of credit. Your company will benefit in several ways.
Build Credit- Your company will establish credit and boost its score as you make timely payments towards your balance.
Fast and Easy Approval- The application process is simple, and can be started online.
No Interest Until You Borrow- With other types of borrowing, you have to take the funds in a lump sum, and you owe interest on the full amount. With these types of secured loans, interest is only added if you choose to borrow, and it’s only tabulated based on the amount of capital you’ve utilized, rather than the total amount available.
If your business needs help meeting unexpected needs, or you’d like to establish better credit, secured loans might be the answer. Speak with a specialist at the credit union closest to you or begin the obligation-free application online now to get started.