{"id":791,"date":"2020-01-27T10:27:36","date_gmt":"2020-01-27T10:27:36","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=791"},"modified":"2020-03-03T16:56:20","modified_gmt":"2020-03-03T16:56:20","slug":"why-take-up-small-business-line-of-credit-in-canada","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/why-take-up-small-business-line-of-credit-in-canada\/","title":{"rendered":"Why take up small business line of credit in Canada"},"content":{"rendered":"

<\/p>\n

What is business line of credit?<\/span><\/p>\n

A business line of credit(LOC) is lending money to a business owner with interest as fees. LOC is a dept financing, where owner\u2019s have to pay the money back over time. A line of credit is a revolving form of a loan, but it is different from traditional loan. It is depend from bank to bank, that line of credit will have fixed rate or variable rate of interest.<\/span><\/p>\n

In line of credit, maximum lending money is decided before, and the owner can borrow any amount of money within its maximum limit. And, the interest will only be applicable on the borrowed money only, which is what line of credit is.\u00a0 The<\/span> small business line of credit with Small Business Capital <\/span><\/a>is the most valuable way you can receive funding and not throway major share of your business out of your hands to run the business.<\/span><\/p>\n

Other than business line of credit there are also other LOCs like Personal Line of Credit, Demand line of Credit etc.<\/span><\/p>\n

Here, is Why you should take up small business line of credit?<\/span><\/p>\n

How to get a business line of credit application?<\/span><\/p>\n

The application processing time for a line of credit is easy but time taking. So, you can\u2019t afford anything wrong in paper work. It is best to prepare every document work before your application get declined.\u00a0<\/span><\/p>\n

Here, are the required document required for approval of Line of Credit application-<\/span><\/p>\n

    \n
  1. You need a business bank account(current account)<\/span><\/li>\n
  2. You need to submit your business licence, specially required to get business line of credit.<\/span><\/li>\n
  3. You need to show last two years, business financial statement with self-attested by the owner.<\/span><\/li>\n
  4. Your bank transaction history or statement\u00a0 for last three months.<\/span><\/li>\n
  5. \u00a0Your need to submit investment or deposit statement at other institute.\u00a0<\/span><\/li>\n
  6. Government issued ID-proof, this will prove your nationality.\u00a0<\/span><\/li>\n
  7. Income tax return statement<\/span><\/li>\n<\/ol>\n

    How does business line of credit beneficial than business loan?<\/span><\/p>\n

    In line of credit you don\u2019t need to borrow full amount at a time. You can borrow small amount of money when you need it, and you only have to pay on the borrowed money only. It is beneficial for small business and new business, because you don\u2019t have to borrow large amount of money at once.<\/span><\/p>\n

    Also, you don\u2019t have to apply for multiple business loan every time. So, this saves your time from the complicated process of loan<\/a>.<\/span><\/p>\n

    You can even start a business with nothing with the help of unsecured LOC.\u00a0<\/span><\/p>\n

    Where can I apply for business line of credit in Canada?<\/span><\/p>\n

    In Canada, you can go to any bank having line of credit service. It will be easiest job if you have already have account in that bank, if your don\u2019t have one you need to open first a business bank account. These are some of the popular banks in Canada-<\/span><\/p>\n

      \n
    1. CIBC<\/span><\/li>\n
    2. TD Bank<\/span><\/li>\n
    3. RBC<\/span><\/li>\n
    4. BMO<\/span><\/li>\n<\/ol>\n

      \u00a0<\/span><\/p>\n

      Why take up small business line of credit in Canada?<\/span><\/p>\n

      Line of credit is for business man and specially for small business. Let\u2019s see why\u00a0<\/span><\/p>\n