Partial doc business line of credit

A business line of credit (which means ready cash anytime you need it) is a marvelous and flexible financial tool to help any business grow and keep you in control. Best of all establishing a revolving credit line is cheap, you only pay interest on what you borrow and you can use the line for almost anything.Some of the most familiar reasons to get a business line of credit are:

• Remodeling, upgrade or expand your business into a new space.


• Upgrading your phone system, computers or other equipment and technology.


• Acquiring extra inventory for upcoming promotions or seasonal spikes.


• Pursuing a business opportunity or cover unexpected expenses.

One of the easiest lines of business credit to get is a partial doc line of credit.This is known as a partial documentation business line.This means that you will not have to fully disclose all the information that is required in a full documentation (full doc) business line of credit.Generally the lender will require a business credit application, credit scores, time in business and business type regardless of the type of credit you are applying for.For a partial doc business line of credit the lender may require only some information concerning length and depth of credit history, the amount of money in the bank, and a number of other factors.

However it is important to keep in mind that those businesses that are pursing a partial doc business line of credit will have to have over a 640 credit score (most lenders require more into the 680 range).If your credit score is not in this range you may be required to provide full documentation for your line of business credit.The advantages of a partial doc business line of credit are that the business does not have to be tied down to extensive time and effort to provide full documentation.In addition some businesses can hide less than stellar facts about their business that they may fear could hurt their chances of receiving a business line of credit.

Businesses that are pursuing this type of business credit should contact a small business banker for a business line of credit. There are also some banks that make it a specialty of their lending business to offer business lines of credit.

It is crucial when looking to establish a business line of credit that you prepare the information that you will need to set up the credit.Too obtain any credit line; you should be prepared to supply the needed financial information about your business and/or yourself to potential lenders. Being prepared with the right information also helps to establish confidence with the lender that you know what you are doing. It can also be helpful to have a copy of your business plan for your lender to review.This enables your lender to see what your plans are in (hopefully) a clear and concise way that can also increase confidence in your business.

One of the first steps that can be helpful when preparing to apply for any credit is to research online what information you will need. For small business owners the Small Business Administration has a good section on points to consider when borrowing money for your small business via loans or lines of credit. Small business owners would do well to pay special attention to their credit history and understand any questions a bank might ask. In addition you should also know exactly how much money you will want to borrow (or establish in a line of credit). Be sure to calculate your working capital needs. There are many online calculators that can help you figure this for free.