- Apply for a credit line
- Use as needed
Inquire With Bank About a Credit Line
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Early on in our relationship with our local banker, we inquired about obtaining a credit line. The idea was that if we ever needed extra money, we would be able to immediately pull from the credit line at an interest rate that was much less than our credit card.
Like a credit card, it is usually easier to set this up when you don't need it and then have it when you do. Your banker will want to review your personal financial situation and assuming you have solid credit, you will likely be able to arrange this credit line.
Having a personal relationship with your banker will also help you obtain the best arrangement. Show your banker what your business is all about and keep them informed as you make steady progress in growing the company. Some day, you may need their financial support and it should be easier to get it if you have developed a one on one relationship with a loan officer prior to needing the funds.
You can use your credit line to get additional funds beyond the normal float period of your credit card. Usually there is flexibility in the repayment schedule. The interest rate is often a set amount over the prime lending rate.
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