US Fund Sources should be your choice when it comes to finding a funding source for the growth of your small business. Why you may ask.
The answer to this is very simple. It is because they provide a line of credit for small businesses. A line of credit is when funds are provided to the needed person without the need for a collateral
It is a way of getting the needed backing for your financial needs when it comes to expanding and aiding the small business that you have set up. Where depending on the banks for loans need a separate process for each time, a line of credit for small businesses would require only the demand.
That would mean borrowing and repaying the money as needed and when needed for the finances of the business.
Conditions that need to be met
Us Fund Source would require the business to satisfy certain conditions to provide the best form of the line of credit for small businesses. These are as follows.
- The Time of establishment and the duration through which it has existed is the first condition. Here the business needs to be at least 6 months old. The longer the business has been in the game, the better. That would decrease the risk that the company takes and would be closer to getting the approval.
- The second is the revenue of the business. As small businesses go, they can make as little and as big revenue depending on the business and working methods. A business that makes a yearly gross revenue of $200,000 to $500,000 would be eligible. If a business goes higher then the system can be flexible and adjusted, given every other criterion is met. In case the business has a very low revenue say, less than $150,000, then they are eligible for micro-lending solutions.
- The financial standing of the business comes third. That is focused on the debt to income or revenue ratios. As it is generally understood, the less debt the business is in the better it is to invest in it. The same applies here.
- Profits and the cash inflow of the business is also an important factor taken into consideration. This is done so that the company can be sure that the business would be able to make the payment back. That also helps them analyse if the funds borrowed are put to good use.
- Fifth comes the industry type of the business and the borrowed funds in it. As there are programs that restrict the use of the funds in certain industries it is essential to check them. They also make a point to check whether the funds are being used for the growth of the business and if it is generating profits.
- Lastly, the creditworthiness of the business is checked. That is where having good credit would come in handy, as a business with one would be given priority. Although it is hardly an essential factor it is of use. In cases where the credit is bad, but the profits and revenue are good, the company would consider the business. That might hardly be the case where credit and revenue are bad. Although, solutions for them would be suggested, without abandoning ship.
Taking into consideration all these points, the company would accept a business for a line of credit for small businesses. Once that is done, then the business is free to borrow and repay as they please inside the credit limit imposed on them.
Now that there is a definite way to move forward without the hectic banks, why wait for more. Join in and better your business with US Fund Source.