Growing a business, any business, isn’t easy and it requires capital. If you are among the thousands of entrepreneurs who have embraced the exciting world of franchising, getting lines of credit can provide excellent resources to fulfill your business dreams.
What Are Lines of Credit?
A line of credit is simply a loan arrangement between a borrower and a financial institution to access a set amount of money when it is needed. It is like an open-end credit account, allowing a borrower to spend amounts of money, up to the defined limit, then repay the amount used and spend again in a continuous cycle. Lines of credit can be either secured by collateral or unsecured. Lines of credit offer great flexibility to spend at any time and for any business purpose, repaying the full amount spent or paying the minimum monthly amount.
How to Grow Your Franchise with Lines of Credit
Here are ways that lines of credit can help your franchise grow:
- Hire more employees to meet the demands of growth.
- Invest in the existing staff.
- Purchase new/better equipment.
- Increase inventory.
- Ratchet-up your marketing program.
- Provide a safety net for seasonal changes, including payroll and swings in receivables.
- Expand locations and territories served.
- Seize new business opportunities.
Ways to Increase Lines of Credit
To cover cash crunches and keep cash flow healthy, here are ways to increase your lines of credit:
- Prove you are an excellent borrower with an excellent repayment record.
- Build your personal and business credit score.
- Payoff expenses on time.
- Demonstrate strong financials.
- Prove the strength of your business with your social media presence.
Seek Expert Financial Assistance
Contact First Source Capital, based in Wakefield, MA for more than 50 financial products and solutions for businesses of all sizes. Our commercial finance options can give new business owners the capital you need to thrive and grow. Our team of trained financial professionals is ready to assist you.