Small Business Lines of Credit
	In the world of lending, seeking small business lines of credit is one of the most difficult aspects to acquiring business financing. This is simply because given the current situation in the economy, lenders do not want to increase the risks related to their credit portfolios – especially for small businesses. Unlike business loans, business LOCs are usually not packaged into bonds and resold into the secondary market. Many financial institutions hold the business line of credit on their balance sheet rather than seeking the credit facility to a third party. This is primarily attributed to the fact that since this credit facility has a revolving balance – a bond cannot be issued since it was not a lump sum promissory note that can be sold to a third party. Herein likes the difficulty for entrepreneurs that need small business lines of credit. However, the Federal Government, the US Treasury, and the Comptroller of currency have begun to require large banks (especially institutions that benefited from the TARP program) to allocate a significant portion of their business lending activities to small businesses. Although it is always the largest companies that make the front page of business journals and newspapers – it is actually small and medium sized businesses that make up more than 85% of the borrowing and revenues of the United States Gross Domestic Product. As such, it is imperative – in order to spur true economic growth – that lending resume normally to qualified small businesses and startup entrepreneurs that have the necessary credit and collateral to start a new business. When you are applying for small business lines of credit – you will be required to present all of the documentation that we have discussed in previous articles. One of the other alternative financing methods when it comes to small business LOCs is that you can use your primary residence as collateral. Typically, if you are able to successfully operate your business profitability for three years then the lien against the equity in your primary residence (or any other type of real property that you may own) will be dropped and the business line of credit will be completely secured by the historical cash flow of your business as well as assets owned by your company. Finally, you should take all of these issues into consideration when developing a plan for obtaining small business lines of credit either for startup businesses or existing businesses that need expansion capital. As we have discussed before, the best thing that you can do when seeking startup capital is to make the appropriate determination as to whether or not you need a lump sum loan or a revolving credit facility.
	Below are a number of articles that you can read that will assist you in obtaining a business LOC:
	Business LOC vs. Business Loan Securing a Business LOC Do You Need a Business Plan to get a Credit Line? How has the Economy Affected People's Ability to get Credit? Unique Business LOC Types Property Rehab Loans and Lines of Credit What is a Warehouse Line of Credit? Businesses Best Suited for a Business LOC Alternatives to Business Credit Facilites Using Personal Credit Cards Instead of Business LOC The Mechanics of a Business Loan The Mechanics of a Business Line of Credit Importance of Establishing a Business Line of Credit Using a Business LOC for Startup Capital Questions That Will Be Asked By Your Banker The Importance of Personal Credit When Obtaining a Business LOC What is an SBA Backed Business Line of Credit? Determining How Much You Can Borrow Through A Business LOC How a Business Line of Credit Should Be Used Comparing Offers from Banks for Business Lines of Credit Business LOC and the Concept of Leverage Secured Vs. Unsecured Business Line of Credit Using a Business Loan/Credit Line Brokerage Repayment of a Business LOC Commonly Used Terms in Lending Using a Small Bank to Obtain a Business Line of Credit New Business Line of Credit Business Revolving Line of Credit Overdraft Line of Credit Small Business Lines of Credit Accounts Receivable Backed Lines of Credit