Fund.do Offers Best Line Of Credit For Startup Businesses

Posted On Thu, September 03, 2020, 12:50 PM
Line of Credit for Startup Business

Business finance provider aims at helping aspiring entrepreneurs to set up their ventures through their business credit line services. For encouraging budding entrepreneurs to set up their dream ventures and existing business owners to diversify, Fund.do provides a reliable business line of credit services to its clients.

A business line of credit is essentially a financial borrowing method where the borrower is provided with a credit limit instead of a lump sum of funds. The borrower can withdraw funds within this limit according to their convenience. A major difference between a business credit line and other loans is the fact that the borrower only pays interest for the amount withdrawn and not for the entire credit sanctioned.  Fund.do provides a revolving line of credit to startup businesses. This means that the maximum credit limit of the loan would automatically reset itself after the borrower has settled the debts.

For example, if a startup received $80,000 as a credit limit and used $30,000 for the given term, their credit limit would go back to $80,000 once they have paid $30,000 along with the interest. They do not need to go for reapplication.

Startup businesses can avail Fund.do’s business line of credit for several purposes, such as:

  • Purchasing inventory

  • Handling payroll

  • Paying rent and other office bills

  • Funding marketing and/or sales campaigns

  • Fulfilling other short-term working capital needs

Before approving the application for a business line of credit, lenders take several factors into consideration. Some of these factors include:

  • Personal credit score

  • Business credit score

  • Years of business activity

  • The financial success of the business (revenue generated)

  • Value of the collateral provided (if any)

  • The industrial sector the startup belongs to

  • Any additional services required by the borrower

At Fund.do, startup businesses can avail five major business credit lines according to their specific needs:

  • Secured Business Line of Credit – Here, the borrower gets a credit limit in exchange of an asset pledged to the lender as collateral.

  • Unsecured Business Line of Credit – Here, the borrower is not required to pledge collateral to avail a credit limit. The finances are obtained purely on the basis of the borrower’s credit score and other relevant factors.

  • Personal Line of Credit – This credit line is not availed as a business organization. Here, the borrower can obtain a credit limit on their personal credit score and use the money to fund their startups. The startup is not directly liable for making repayments.

  • Business Credit Cards – These are credit cards designed especially for businesses. The working of these cards and fees involved are similar to personal credit cards.

  • Home Equity Line of Credit (HELOC) – Here, the borrower can obtain a credit line by pledging their house as collateral.

Fund.do is a financial services provider and lender based in Boca Raton, Florida. It provides several financial products and services to small businesses, such as Invoice Factoring, Oil and Gas Factoring, Trucking Factoring, Merchant Cash Advance, SBA Loans, Business Term Loans and many more.


Contact Information:
Kumar
funddousa@gmail.com

This press release is posted under categories Banking, Business, Finance

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