Greater Globe AllianceTM 

   Lines of Credit

A business lines of credit can be a valuable financial tool that provides flexibility and stability to a business. Unlike a traditional loan, a line of credit gives businesses access to a predetermined amount of capital that they can draw upon as needed. This helps businesses to address short-term cash flow gaps, manage unexpected expenses, or seize new opportunities. This type allow to draw upon as needed, without the need to apply for a new loan each time. You re-pay what you use and once repaid you can use it again and again. With a business line of credit, businesses only pay interest on the amount they draw; borrow, making it a cost-effective financing option. Additionally, a line of credit provides businesses with a safety net, ensuring they have access to funds when they need them most. It offers the flexibility to borrow and repay repeatedly within the predetermined credit limit, allowing businesses to manage their cash flow efficiently. Overall, a business line of credit empowers businesses to navigate financial fluctuations, seize growth opportunities, and maintain a stable financial position.

How It Works

  • Revolving Credit: It's like a credit card; you can draw funds, pay them back, and re-draw as needed within the credit limit.

  • Interest & Fees: You pay interest only on the drawn; used amount and potentially fees like origination, annual, or draw fees.

  • Payments: Typically involves minimum monthly payments on the used portion. 

 

Used For:

  • Managing seasonal cash flow dips.

  • Covering unexpected operating costs.

  • Bridging gaps lager than normal cash pay-outs before business receives its larger payments to come in. 

  • GGA strongly believes THIS IS A MUST for all businesses, large, medium and small businesses. As we all know, having access to capital at a moment’s notice is extremely important. Why not have it ready even before you need it?  This provides businesses the ability to access additional cash when needed. The benefit is businesses that have the line of credit available ahead of time. We do stress have access to additional capital fast saves many headaches and in certain cases allows to benefit from quick deal opportunities that always present themselves. The advantage of tapping into when needed and only pay interest on credit line when and the amount they have used, not the entire balance.

 

Greater Globe Alliance and its lender network offer two types of Credit Lines , “A.K.A” Lines of Credit to our clients.  We offer an asset-based line of credit that are secured by a borrowers assets. This means the loan is backed by the borrower’s collateral (real estate, inventory, receivables). This type , often leads to easier approval process and quicker availability. This type also allows the borrower to apply  for  higher limits or better rates, because this loan has less risk to the lender. The second type is unsecured which is based on creditworthiness and your business revenue’s stability. In this case there is no collateral.

 

Pre-requisites

Secured is collateralized, hence is generally an easier approval. Usually lower credit scores will be considered acceptable. Revenue to loan amount ratios should show stability

Unsecured

  • Credit Score: Generally, applicant needs a personal FICO score of 600+. Often higher ( “700+”) for traditional banks that means banks only approve credit line applicants with excellent credit. However with our network good credit is Ok
  • Time in Business & Revenue: Lenders look at your business's age and annual revenue.
  • Terms can be flexible as well given we have several types and option that are tailored to you and your business.

  • Applying require 4 months of recent bank statements, tax returns, business info (EIN, revenue, years in business). 

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