17 Jun Top 5 Most Popular Business Loan Criteria: Revolving Line of Credit (1 of 5)

If you’ve ever scoured the Internet for business loans before, you know searching “small business loans” can easily turn into a frustrating experience.

This is part 1 of 5

You’ll trawl through so many different types of loans, and then quickly realize that all lenders have different requirements. A loan that might seem perfect for you may require two years trading history, while another wants you to be profitable with only one years trading history and so on. Then there’s finding the best deal and deciphering the real costs between each lenders offered rates and flexibility based on pricing!

We’re going to cut through most of your confusion. We’ve put together some minimums your business needs to potentially qualify for each of these popular business loans.

Get the low down on what lenders are looking at:

  • Minimum Years in Business
  • Minimum Revenue
  • Minimum credit (veda) Score – Do these loans require clean personal credit as well?
  • Profitability – Does the loan require your business to be profitable?
  • Bankruptcy – Could you qualify even if you’ve previously been bankrupt?
  • Credit Card Volume – Some types of alternative loans rely on credit card
  • volume in your business, as this is how the loan will be repaid.
  • Accounts Receivable – Some types of alternative loans factor your
  • accounts receivable value into their asset ratios.
  • Existing Debt – Do you currently have a loan balance with another lender?

Minimum Criteria: Revolving Line of Credit

A Line of credit is one of the most popular types of credit in Australia. They are simply an open account with a lender that features a fixed amount of credit you can draw on at any time. Lines of credit have many advantages, namely that once you have one in place it is readily available for short-term cash flow needs, and that you only pay interest on the amount that you actually use and you’ll only pay the lender back when you exceed your credit limit or you wish to make payments to reduce your interest charges.

Years in Business Required: 1 +
Minimum Revenue: $200000+
Personal credit score 600+
Tax debt: Yes in most cases
Profitability required? In most cases
Bankruptcy allowed? No.
Credit Card volume a factor? No
Accounts Receivable a factor? Yes.
Second position allowed? In most cases.

Next loan type coming up is Invoice Factoring.

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