Believe it or not, there are ways for small businesses to get lines of credit

Line of credit for business


In very recent times, a line of credit for business was considered the exclusive arena of very large corporations that were dealing with very large financial institutions. Lines of credit have been traditionally used for order fulfillment or for expansion of a company’s operations. Corporations have used lines of credit to bridge the gap between outgoing cash – for the products and services needed to deliver their product to the end user – and incoming cash paid to them after the end-user has received their product or service. For large corporations these lines of credit often reach millions upon millions of dollars, and are freely offered by financial institutions that are accustomed to in these types of arrangements.


But what of the small business in need of the same sort of bridge between the manufacturing of their product and the receipt of payment? Often times, if this bridge is not made, the small business simply has no choice but to shut down because they cannot meet their orders. Many small businesses have failed in their first year, not because they were not a good business, but because they simply did not have the capital to carry them through from A to B. Having the same opportunity and the same access to bridge funds as larger corporations can and able a smaller business to survive and thrive as they work to not only maintain their business but to grow the business.


Being able to obtain a line of credit for business is vital, especially for a product manufacturer. If a small business manufacturers a widget, it must be able to purchase the materials needed to make that widget, as well as pay for the payroll, utilities, equipment and other expenses that are needed to produce that end product for their client. And even once the product has been manufactured and delivered to the client, the company has to be able to maintain itself for the 30 days or so that it takes to receive payment from the client. This is why a line of credit for business is so very important; it bridges the gap between outgoing and incoming cash, allowing the company the room that it needs to breathe in between.


For small business owners who are having difficulty finding a source for a line of credit for business, we’ve attached some information on how one company that helps many small businesses with financing operations and expansion – much in the same way as the larger financial institutions provide services for the larger corporations. In a sense, you could say that this company is a sort of advocate for the little guy – providing a service for them that is almost always overlooked by larger banks.

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