Maine Business Loans – Line of Credit
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Maine Business Loans – Line of Credit

By Donovan White 10/25/2017

Having a line of credit for your business can be tremendously helpful when looking for working capital. However there are many misperceptions about lines of credit and how to get one for your business. I will help dissect what a Line of Credit Lender is looking at to determine the size of the line of credit that will be available:

What are Line of Credit Lenders Looking For?

A line of credit Lender is going to base their decision to lend to your Maine Small Business based on the cashflow of your business checking account. There are some sole proprietors out there or small crafters or independent business people that still just use a personal checking account. That is still ok, Lendio does have one lender on the platform that will look at a personal checking account with $5K+/month in deposits. Either way, cash flow is king in the line of credit realm. Here are three tips to help with funding:

1) Average Daily Balance – the higher the average daily balance of the business checking account, the higher the line of credit offer is going to be for. Try and aim for $10K+ Average daily balance to get offers.

2) Frequency of Deposits – the more frequent the deposits the better. If you only make 1 to 2 deposits a month, dont worry, you are still fundable, just refer to point number 1 and keep the average daily balance as high as possible.

3) Size of deposits – a little greater weight on frequency than on deposit size, however increasing deposit size as high as possible is best. If you are primarily a cash based business, getting as much cash as possible to flow through the business checking account is key to getting funded.

Why Get a Line of Credit?

Your business might need a monthly payment schedule as opposed to a daily. A line of credit will help with that. You might need temporary working capital during key points of the year. A Line of Credit has the ability to not charge fees when not carrying a balance and if you payoff the line of credit, you can later on in the year draw against the line of credit. Its working captial when and how you need it. It can be harder to establish a line of credit. Your personal credit score will be a factor in the decision and needs to generally be at a minimum of 600 or greater. Time in business greater than 3 months is necessary. Line of Credit products will be very hard to use for a startup business. For startups, check all available resources for grants and other funding options first. Check with your local economic development council, the SBA, Score, Maine Technology Institute. Many have different programs available to help with your starting out Maine Business.

Consult with Donovan White

If you are not sure what product is right for you. Its still ok to submit your application: Complete your application then send me an email or call or text. [email protected], 207-560-0912 Donovan works as a funding manager using a consultative approach to understand your goals and objectives and to find the cheapest cost of capital for your small business needs.

Who Is Taking Advantage of Lendio Local Maine’s Services?

Meet David Bidler David Bidler, “David Bidler is a human performance specialist. He works with a diverse clientele to peak mental and physical fitness. David is the owner of The Distance Project: Strength and Conditioning and the founder of the personal development program, BRAVE.”

David came to me to help get Brave funding. By utilizing a specialist we were able to the Distance Project approved for several lines of credit to help complete the application BRAVE and launch into personal development offering strategies to managing stress in the workplace environment. Please go check out David’s website to help support Davi’s program.

Thanks and let me know if I can be of service to your business.

– Donovan White

 

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