If your consulting business is growing and you’ve started hiring employees, you may want to consider obtaining an unsecured business line of credit. Consulting companies usually get paid on a 30, 60, or 90 day basis. Unsecured business lines of credit can be used to cover your expenses (especially payroll), while you are waiting to be paid by your consulting clients. Unsecured business lines of credit will save you from getting into a financial bind while waiting on your receivables. They can also be used for a variety of different expenses.
What’s So Great About an Unsecured Business Line of Credit
The best thing about an unsecured business line of credit is that you only pay back what you use (unlike a small business loan). For example, if you have $50,000 in unsecured business lines of credit and you use $5,000, you will only be required to pay back that amount (plus interest). Whatever you don’t use, (in this case $45,000), will be available to you for future use. Furthermore, you can have it for the life of your business as long as you properly maintain it and the lender wants to continue their relationship with your business.
Potentially having access to working capital for the life of your consulting business will enable you to operate without worrying about covering expenses until your receivables are paid. If you use the unsecured business line of credit wisely, you should always have it available to you when you are in a cash crunch.
Get an Unsecured Business Line of Credit for Your Consulting Business Today
If your consulting business is ramping up and you need immediate cash to cover the costs of your expenses while you’re waiting on your clients to pay you, an unsecured business line of credit may serve you well. Here at LenCred, we are experts in helping entrepreneurs and small business owners obtain up to $200,000 or more in unsecured business lines of credit. If you’re interested in learning more, please contact us for your free consultation.