FUNDING
BUSINESS LOCs
Business Lines of Credit: The Golden Egg That Keeps on Giving
A BUSINESS LINE OF CREDIT CAN BE A VALUABLE TOOL FOR REAL ESTATE INVESTORS, PROVIDING FLEXIBLE ACCESS TO FUNDS, LOW-INTEREST RATES, IMPROVED CASH FLOW, INCREASED FINANCIAL STABILITY, AND THE OPPORTUNITY TO BUILD YOUR CREDIT HISTORY.
By Merrill Chandler
s a real estate investor, it’s essential to have access
investors, and that means too much risk for the banks. Let’s take a look at the benefits of having a business line of credit and the secret for real estate investors getting approved. FLEXIBILITY One of the most significant bene - fits of having a business line of credit is the flexibility it provides. Unlike a traditional loan, a business line of
credit allows you to borrow money as you need it, up to a certain limit. This means you can have access to funds when you need them without having to apply for a new loan every time. This flexibility can be especially beneficial for real estate investors who may need to act quickly when an opportunity arises. LOW-INTEREST RATES Another advantage of having a business line of credit is the interest rates are typically lower than other types of financing such as credit cards or personal loans. This can be especially beneficial for real estate investors who are looking to invest in long-term opportunities that require a significant amount of capital. With a lower interest rate, you can save money on interest charges, which can help improve your overall return on investment. IMPROVED CASH FLOW Investing often requires a signifi - cant amount of capital upfront, which can strain your cash flow. With a business line of credit, you can have
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to capital you can use to invest in new opportunities or support existing investments. One option for accessing capital is a bank business line of credit. A business line of credit provides flexible access to funds you can use for a variety of business purposes. The problem for real estate investors is that most can’t qualify for a busi- ness line of credit because they are
30 | think realty magazine :: may – june 2023
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