Line of Credit

If your business finds that some things are financially out of reach from time to time, a Line of Credit could be an excellent solution for you. This form of revolving capital is a fast, convenient, flexible way to access the working capital you need when you need it. You can access these funds once it’s in place without applying again. Often you will only pay interest on the drawn-down amount, not the whole facility.

• Building & Construction
• Manufacturing
• Catering & Hospitality
• Cleaning companies
• Courier services
• Engineering shops
• HVAC technicians
• Automotive
• Removalists
• Mining
• Medical 
• IT Companies
• Professional services
• Tradies

Unlike a loan that must be used for a specific purpose, a Line of Credit allows you to access funds whenever and for whatever your business needs. If you don’t need the money right away, don’t use it. Just repay the credit line at any point. With a Line of Credit, you have the assurance of being prepared for any situation. 

Additional benefits of utilising a Line of Credit include: 

• Quick access to working capital
• No collateral required
• Pay back only what you’ve used, not the total amount approved
• Cover those in-between payments and expenses anywhere, anytime
• Accomplish your short-term goals
• Access to emergency funds
• Expand your business by using extra funds to tender for larger jobs
• Negotiate discounts with suppliers using the overdraft for larger upfront payments
• Access funds to pay bills while you’re waiting to receive payments. 

A Line of Credit is a flexible financing option that provides your business with access to additional funds whenever needed. The credit operates on a revolving basis, which means that you can borrow up to an approved limit even after making repayments. 

Similar to personal credit, a line of credit allows you to borrow a specific amount of capital annually. This can be beneficial in helping you manage cash flow shortages or cover unexpected expenses until you have sufficient funds. In most cases, you are only required to make payments on the amount of credit you’ve used. 

Unlike traditional loans that have regular payment schedules with fixed amounts a Line of Credit typically involves minimum monthly payments. However, it is important to note that a Line of Credit is not suitable for long-term investments or major purchases. Its primary purpose is to provide quick access to working capital when needed. It is crucial for businesses to repay the borrowed amount promptly, as the interest and late fees can accumulate rapidly. 

When you submit an application, lenders will evaluate your business to decide whether they will extend a Line of Credit based on your creditworthiness. Factors they will consider include the following: 

• Your personal and business credit history and ability to manage finances
• Capacity to generate revenue and how much income is expected
• You’re a sole trader, a partnership with up to two partners, a company with up to five directors or a trustee of an eligible trust
• Your business is registered for GST and operated under your current ABN/ACN for over 12 months.
• You’re at least 18 and a permanent Australian resident.