Revolving Line of Credit
Our Revolving Line of Credit is designed specifically for the Business to Business (or B2B) space. The loans provided through the Revolving Line of Credit range from $250,000 to $10,000,000.
What is a Revolving Line of Credit for Business?
Sunwise Capital’s Revolving Line of Credit -Revolving Line of Credit Requirements
- 12-month revolving term credit lines
- Interest rates from 7.99% to 18.99%.
- Businesses annual revenue of $1,000,000 to $50,000,000
- Businesses for more than 2 years may qualify
- Funding ranges from 4 to 7 days
This loan will appeal to a wide variety of industries, including:
For many businesses, acquiring a small business loan from a traditional financial lending institution can challenging, at best. Unfortunately, most business owners are unable to apply to go to the bank for a small business loan. The biggest challenge is that banks, unfortunately, require a large amount of paperwork.
This paperwork typically includes financials like Profit and Loss statements and Balance Sheet. It also requires the prior 3 years of personal tax returns, business tax returns, and personal
guarantees. Last all banks want you to provide collateral and have excellent credit with a high personal credit score, usually above 720.
Many entrepreneurs and small to medium-sized business owners cannot jump over these hurdles. The result is the business owners find it hard to find new or innovative ways to fund their loan requests for working capital, loans, and lines, to expand their businesses or better manage their cash flow.
The unique advantage to this revolving line of credit, unlike many other lenders, Sunwise Capital does not notify the customer. For many small companies trying to grow, the biggest negative about factoring is that the business owner’s customers are notified when a factor (or lender) takes over the receivables.
The negative perception is that the customers are no longer paying the business, instead, they believe they are paying the lender or factoring company. This common fallacy may concern the customers and they may start to think your business may have cash flow trouble.
In most business loan instances, this is untrue. Since we do not notify your customers, your business gets the funds it needs without giving the customer any need for unnecessary concern.
Businesses that take advantage of this offering will have full access to a self-service client portal as well as on demand liquidity (think online banking). We simply use your business’ accounts receivables as collateral (this makes them secured loans). The result is the time from application to funding ranges from only four to seven days.
Pros and Cons -What is a Revolving Line of Credit?
A revolving line of credit for business is when a financial institution extends to the business available credit (money) for an open or undetermined amount of time. The debt is repaid on a periodic basis. The advantage of this credit is that once it’s repaid, it becomes available again.
How does this Revolving Line of Credit Work?
What this means to you is that after the financial institution establishes this “revolver” you can continuously borrow up to that predetermined credit limit. So, each time you purchase something, you are using the extended credit and that amount is subtracted from the credit line. You will pay on the unpaid balance. As you pay off that borrowed amount, your credit line will increase. Think open-ended credit.
What do You Mean by Revolving Line of Credit?
Are you familiar with credit cards, HELOCs (home equity lines of credit), department store or gas cards? Then you are quite familiar with this type of credit. These are all considered revolving lines of credit. The key is that once the account is paid off it does not close. The funds remain available for future borrowing.
What is the Difference Between Revolving and a Non Revolving Line of Credit?
The nonrevolving credit or nonrevolving lines are typically the installment or term loan. This is a loan that makes regular payments. These can be daily, weekly or monthly payments. You are
provided with a lump sum or principal amount and it is paid off over a predetermined amount of time. Once it’s fully paid it is retired and the funds are no longer made available to you.
How to Use Revolving Line of Credit
- Cash Flow
- Short term capital
- Future projects -specific purchase
- Business Operations -paying bills
- Debt Consolidation revolving line of credit