Unique Business LOC Types
	As an alternative to obtaining a traditional business line of credit, there are two types of facilities that use your future earnings or current receivables. A credit card receivables LOC is linked to your merchant account. This type of lender typically refers to this type of credit facility as a “credit card receivables advance.” Typically, this lender provides an advance of up to 2 months of income based on your merchant account usage history. Each time a sale is made, a certain percentage of the sale is deducted from your balance owed to the lender. However, this type of lending is very expense. The interest rates for this type of business loc can range anywhere from 15% to 29% depending on the state’s lending laws. An accounts receivable business loc is secured by the individuals or businesses that owe you money. In this scenario a lender will look at your receivables, who your customers are, and how long they have owed you money. Based on these factors, these lenders will provide you with a capped line of credit. However, it should be noted that even if your client does not pay – you will still be liable for the money drawn down on the business loc. Factors are an example of lenders that use your AR for collateral. Factors can be expensive and may upset or concern your customers. As an alternative to this, some lenders will “purchase” your receivables for a discounted rate. For instance, if John Doe owes you $1,000 then the lender will buy that receivable from you for $850 to $900. If you decide to sell your receivables to a third party – you need to carefully consider whether or not you can afford to sell your receivables for a substantial discount.
	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