The type of product that is ideal for your business depends on the need for capital, the desired repayment terms, and the amount of capital needed, among other business-related factors. A loan is ideal for businesses looking for traditional financing with a higher capital amount and potentially longer repayment terms. A line of credit is ideal for businesses that have repeated cash flow needs. It can also be used for a variety of short-term needs, such as managing payroll or covering unexpected costs. A line of credit allows you to repeatedly draw on funds, up to the maximum credit amount approved, while making regular payments to pay off only what you’ve drawn and any associated fees or costs. With a loan, the business needs to pay back the entirety of the loan including any associated interest charges or fixed fees.
Applying for a business line of credit at New Jersey Express Funding is simple and our online application only takes minutes to complete. We’ll ask a few questions about your business and request additional information, such as the owner’s information, last three months of bank statements, verification of identity, business information, and a business checking account. If approved, your business will have access to draw on the approved line of credit through our online client portal.
A line of credit works by giving businesses access to working capital that they can use at any given time. The business is responsible for paying back the drawn amount and any associated interest or other fees. Automatic payments are withdrawn from the business bank account. Amortization can be from 3–18 months and may reset every time the business draws more capital from the line of credit.
Your business can draw from its approved line of credit at any time. The amount drawn will be deposited into the business bank account. You can then use the funds for your desired business purpose.
