A small business line of credit can be termed as one of the most popular forms of business loans. For the business owner or operator, especially for small businesses, a business line of credit can be a lifeline of financing that can allow them to pay their bills, meet their payroll and continue to operate even when times are tough or business is slower than usual. On the other hand for banks and lending institutions it allows them to hold the business on a short credit lease while they determine their viability in the marketplace.

The best part about a small business line of credit is that it usually easy to get, even for businesses that have not been in business for a long time. The bad part is that financial institutions like a bank or credit union often will want personal guarantees or co-signing arrangements before they hand over access to a business line of credit.

A bank or other lending institution generally requires a business to have been in operation for a minimum of

two years before granting a small business line of credit. That is because of the likelihood of a business failing within the first two years is far greater as compared to the any other period in its term of operation. Once a business passes this stage a bank is much more likely to consider a business as a candidate for loans or lines of credit.

A business line of credit can turn out to be very helpful for short term cash flow management, to make special or seasonal purchases, to re-stock inventory or supplies or for just about any other reason that can satisfy the banks demand for its usefulness to the business. A business line of credit is not generally made available to pay for salaries or bonuses to the employees of a business or to repay creditors from other banking arrangements.

More often than not these funds can be made available to the business in a number of manners under a business line of credit. In few cases they are sometimes available in a revolving cash account that can be borrowed against up to a certain amount or even in the form of a credit card that can be used by the company to make purchases for the business as required. Few business lines of credit require minimum payments plus interest every month and others have interest payment only options.

Therefore to see if you qualify for a small business line of credit it is best to approach a bank or credit union where you already do your business banking. They are aware of you, not just from seeing your face as you make deposits or withdrawals but they also know your personal credit history and this becomes an important factor in granting a business line of credit. Remember that banks are most comfortable lending money to customers that they already know than the off the street business. This will play a crucial role in helping you not only get the business line of credit that your business may need but also help you get the best possible interest rate for your hard earned business dollar.

Getting credit for your small business can be as tough as getting personal credit. The first place you want to begin is with a bank. Large chunk of small businesses have to start with some type of bank loan to cover starting costs. The ideal way to approach the banker is with a complete business plan. It is advisable that you don't pass over the small things. Begin with a mission statement and other documented commitments. Then comes the next step of moving into projected profits and secondary plans of action if the first one fails. With a complete business plan a bank is more likely to enhance credit.

Furthermore after establishing credit with a bank under your business's name it is then possible to apply for a business credit card. With the help of a business credit card it is possible to make purchases for things you need in a hurry. Fact remained that you never know what is going to happen from one day to the next and might need to come up with fast money. For instance, there might be a day when one of your office machines breaks down and is not fixable. If you are using a credit card it is possible to get a new one with out it becoming a problem. There are few offices that cannot maintain a normal working day without a fax machine or a computer.

Majority of the credit card companies do offer rewards and incentives to use their card. In other word these can be frequent flyer miles or cash back after spending a certain amount. Whats more they can also be a valuable tool for someone who has to be on the road a lot. In addition there are rewards attached to different cards that can get you a discount at certain hotels or cheaper meals. It is not a brilliant idea to carry cash, if a credit card is lost or stolen it is usually easy to replace. Remember that any charges made with the card after it is reported stolen are not put onto the account.

One the best advantages of using a credit card for a small business is that you get a statement of your spending every month. This is more than ideal for the person who doesn't have time to do an accounting of their spending on a daily basis. It is especially of great help for multiple card accounts to keep track of what everyone else on the account is spending. These statements can play a pivotal part in helping when it comes to tax time, to figure out the nontaxed business related expenses.

Establishing a line of credit by following this route is good for a small business. There are some big businesses that will not collaborate with a small business until they achieve a certain credit rating. Thats why get out there and spend, pay your bills on time, and have a successful business.