How to Choose the Suitable Business Line of Credit

After the end of the year 2020, we can safely say that it was not that easy for many businesses—especially when most governments globally instilled strict prevention measures against the pandemic, covid-19. Businesses experienced losses due to closure and fewer transactions, which resulted to the decline in business activities. At Moby Capital, we decided to come to businesses’ aid, helping them get back on their feet.

One of the funding options we offer our customers is a business line of credit, which is access to a fixed amount of funds for withdrawal when short-term needs arise. The credit lines we offer help businesses in tough times, such as these by offering them a substantial limit that they can access. A credit line is important because it helps you work within a specified budget, especially when one is not sure about the amount to borrow.

Considerations When Choosing a Line of Credit

  • Secured or Unsecured Credit Lines: Secured credit lines are stricter and secure when it comes to the acquisition of a credit. This is because they require collateral, which acts as a cushion for the lending company if payment is not met. Collateral could be a range of things such as; real estate, inventory, and equipment. If your organization is starting, this is not the best option for you. However, this type of credit is simpler to qualify for, especially with a low credit score.On the other hand, an unsecured credit line is less rigid in the acquisition process as it does not require collateral. It is, therefore, more difficult to qualify for an unsecured credit line.
  • Interest Rate: Cost is one of the most important things to look into when deciding on the best loan offers. Once you borrow against the credit line limit, interest starts to accumulate. Different lending organizations have different rates. It is crucial to assess various interest rates before choosing the best lending organization that fits your needs.
  • Amount: Depending on the limit you are being offered greatly affects your decision to jump on board or decline the offer. This is because the amount you need could be affected by the credit line limit offered. A higher credit line that surpasses your amount is enticing and risky to your business because of unwanted expenditure.
  • Terms and Condition: Before finalizing on accepting an offer, always go through the lender’s terms and conditions to meet when making payments. The pay-down provision dictates your form of payment and the duration you should take before each payment. It is either a monthly scheduled payment or an annual.
  • Fees: Most lending institutions usually charge an annual fee that keeps your account open. Extra charges may include transaction fees, which can be repayment and borrowing charges. Being aware of all extra charges helps you plan better on how to use the credit line offered effectively.
    Business lines of credit are more suitable than business credit cards because they are less expensive and have flexible repayment terms. If there is an emergency that requires instant cash, business lines of credit allow easy and fast access to your money. This means that you can continue accessing the money you need as long as you do not exceed the maximum limit.


At Moby Cap, we can examine our clients’ credit worth to determine the best option for you and your business. If your business has a good credit score, we lower the rate and increase your limit. Our company offers SBA loans, merchant cash advances, business lines of credit, term loans, and invoice factoring. All these help us develop the most appropriate financial plan that is guaranteed to help your business get back on its feet. For more information and useful insights, visit our official website at Moby Cap.

To move forward today, contact us by email at As a BBB-accredited business, we have experience serving all industries and welcome the opportunity to work with your organization.

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