Small Business Line of Credit

February 28, 2023 | Merchants | Dustin

There are countless small and startup businesses operating today that all have something in common. That commonality is the need for increased cash flow. In order to attain additional capital, consider applying for a small business line of credit.

This important financial factor can take a business from small to enterprise levels of growth. Any entrepreneur with a high risk merchant account can greatly benefit from a small business line of credit. With this useful financial resource, any small business can kick start new initiatives that will generate more revenue.

Line of Credit for High Risk Merchants

Most high risk merchants already have additional hurdles to jump compared to the normal merchant. As a result, cash flow is tighter. From paying extra to test products for regulations to spending extra time focused on chargebacks.

There are several types of business loans. However, in this article, only one particular type of small business funding will be covered. Each step of the way for a high risk merchant could be made easier with a small business line of credit.

Additional Cash Flow for Startups

If you are a startup business owner, you know how difficult it is to build up capitol in order to make investments. Luckily, there are payment processors and financial institutions that offer lines of credit for startup businesses.

PayKings is one of the proven and trusted provider of high risk merchant accounts, with established acquiring bank relationships. Because of these strong partnerships and long term banking connections, PayKings are able to provide lines of credit for high risk merchants.

Secured vs Unsecured Lines of Credit

Depending on the size of your business and the amount of financial assets under it, the type of credit options available varies.

• Unsecured Credit Line:

  Businesses that have less payment processing history, capital, and assets qualify for less financial assistance. Therefore, an unsecured credit line is ideal for these sized operations. This can also be referred to as unsecured debt. In this case, the financial institution will not require the business to put up collateral.

• Secured Credit Line:

  Unsecured lines of credit are usually reserved for medium to well established size businesses. These credit lines typically range from $10,000 – $100,000. When a business needs more than $100k, the banks require more security. In these instances, the financial institutions require collateral.

Improve Your Credit Score

On top of increasing cash flow for new business initiatives, as you pay back the lended credit line, you will build your credit rating. As a result, the merchant can then qualify for even larger loans and advanced financing options in the future.

Increased Financial Standing for Businesses

On top of improving a merchant’s credit score, there are other ways to increase the financial standing of a business. For instance, capitalizing on a new, entrepreneurial idea could change the course of the high risk business and drive more revenue.

Once you have secured additional funding for your startup business, you can invest in fruitful sales initiatives. As a result, the business grows financially and is able to fund even more endeavors that can drive sales.

Call the small business credit line experts at PayKings to discuss your businesses options to obtain additional cash flow: (727) 300-0277