Archive for Business Finance

Jan
18

Protect Your Business Line of Credit

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What do you do if your business line of credit is up for renewal?  What happens if a bank denies you?  Did you know that your business is required to pay the remaining balance in full?  Some business owners do not know that they must be financially prepared if a bank denies the renewal.  So how does a business make certain it is able to pass with flying colors?  Here are a few tips to assist in maintaining a business line of credit.

Be Cautious with Spending

What should a business line of credit be used for is a common question asked by small business owners.  The best way to answer this is to utilize it for small purchases and to supply instant financing to cover a cash deficit.  Do not overspend.  If there is a monthly balance left, then pay the principle on time.  Be aware of your spending with a business line of credit, thus, preventing you from getting into a bind later.

Check Loan Terms

The best way to ensure your business provides a positive impact upon your bank is to fully comprehend the loan terms.  Know what to expect and what the bank expects.  Meet expectations, make payments when scheduled, and read the fine print.  This will help with staying on top of it and erasing doubts the bank may have about renewing your business line of credit.

Enhance and Establish Communication

Build a relationship with bank loan representatives and keep lines of communication open periodically.  Keep in touch with the bank regardless if business has been good or bad.  For the more communication exchanged, the less surprises shall arise.

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