Who Qualifies for a Business Lines of Credit?
With Clarify, business owners in a wide range of industries can get pre-qualified. While both good and bad credit scores can secure a credit line, here is what we recommend:
1. Time in business
Your business must have been operational for at least 6 months.
2. Monthly or annual revenue
Your company should generate at least $10,000 a month ($120,000 a year) in gross revenue.
3. Credit rating
A credit score of at least 550. The better your score, the better the interest rate you will receive from lenders.
How to Get Approved for a Business Line of Credit?
Applying for a business credit line is a quick and easy process. While traditional banks have a lengthy and slow process, Clarify provides approval and funding within 1-2 days.
Step 1: Get your documents ready
To speed up the process, we recommend you get the following documents ready in advance:
- 3 to 12 months of recent bank statements
- 1 to 2 years of tax returns
- Profit & Loss (P&L) statement
Step 2: Apply online
Our application takes less than 2 minutes to complete. Once you submit it, a dedicated Clarify advisor will do all the legwork for you.
Step 3: Go over lender offers with your advisor
We'll walk you through the pros and cons of each offer from lenders in our network to identify the best credit line for your specific business needs.
Line of Credit vs. Business Credit Cards
While a business credit line works similar to a business credit card, there are several key differences. A line of credit offers much lower interest rates than credit cards. Some lenders also offer longer payment terms than the required monthly payment schedule of a credit card.
Credit cards also charge extra fees for balance transfers and cash advances. If your goal is to grow your business, a line of credit is always a better, more flexible option.