Why your startup needs business credit line?

Businesses often face revenue losses or losses from unexpected events. Failing to cover these costs, companies end up searching for financing options that can offer assistance in terms of cash or loan. Usually, the very first option that companies opt for is banks and financial institutions. However, due to their high-interest rate, companies often disregard them.

To help businesses, expense management platforms provide corporate credit to companies who onboard with them. While availing business line of credit is not an easy task, getting a business line of credit with Volopay is as effortless as ever!

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Business credit line: A flexible financing option

A business line of credit is a type of loan where businesses borrow a fixed sum of money to meet their short-term obligations and needs.

The main motive behind getting a business line of credit is to finance short and medium-term working capital requirements like the purchase of inventory.

Types of business credit lines

Secured business line of credit

The secured LOC is sanctioned when the business must pledge something as a mortgage to avail the line of credit.

Unsecured business line of credit

Here, to apply for a credit line, you do not need to set aside any asset or anything as collateral, but you will require some personal guarantee.

Benefits of business line of credit

Lower interest rate

A credit line usually attracts a lower interest rate than public or private financial institutions or short-term business loans.

Interest payments

Unlike a general business loan, where you pay the interest on the principal amount, in LOC, you make interest payments only for the amount utilized.

Easy approval

A business line of credit for small business offers benefits like easy LOC approval, quick disbursement of amount, and a balance transfer facility.

How does Volopay business credit work?

Volopay offers a business credit line with minimum documentation and a two-day approval process to enhance usability and convenience. After scrutinizing the client's past credit history and a few other documents, our credit team sends out an email confirming your sanction. Once approved, the credit granted will be immediately disbursed into the client's account.

Volopay has meticulously created the business line of credit for small business, keeping in mind the hardships they face while financing their business. To address the needs of companies, Volopay offers an unsecured business line of credit, meaning to say — you do not have to keep your assets as collateral with us. Neither are you required to submit any personal guarantees.

The main advantage to your business by using our credit limit is — that you don't have to worry about interest rates. Our LOC is interest-free without any concealed charges. To incentivize our customers, we offer more savings if you repay the monthly billing amount before the due date. Also, to make sure you get an advantage for this, our platform alerts you a few days before the billing date, which allows you some breathing space and making arrangements for funds.

Additionally, with Volopay, you can instantly apply for credit line in your home currency. For example, your domestic currency is Singapore dollars (SGD) if you are based in Singapore. We help you avail of the LOC in your home currency to prevent any conversion charges or other fees during the transactions.

Our esteemed credit bureaus, Equifax and Illion, gather information regarding your credit history and financial performance, review your credit score, and generate a credit report based on the data. They help us arrive at the right decision about your credit rating and lending risk.

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Why should you apply for credit line with Volopay?

Gone are the days when banks were the only option for businesses to avail themselves of credit. With the fast-speed revolution in the financial services industry, companies now have a broad spectrum of credit options available without approaching a bank first.

Low annual fees

When a business avails itself of a LOC, they are in genuine requirement of funds or need them to finance a project. We contribute our share in easing the financing process by providing you with minimal annual fees. As your utilization of the amount increases, our charges increase too. However, these are lower than the average charges offered by others.

Flexible credit line

We never want our customers to walk according to us. To deliver better, we first try to understand the customer's business requirements and how we can mold ourselves into them. For this very reason, to support our customers even better, we offer them a versatile and flexible corporate credit line. This means customers can choose on which date they start their repayment cycle.

Superfast approval process

Volopay's business line of credit instant approval mechanism is what sets us apart from the competition. Upon receiving the required documents, our super-charged credit analysis team scrutinizes and assesses them with standardized procedures and gets back to you with a final verdict. 8 out of 10 times, your company is granted the unsecured business line of credit. Unfortunately, if it's a no, we don't leave you stranded either. Our team helps you uncover your financial errors, guides you to improve your credit score, to come back to us next time.

Factors to keep in mind while applying for credit line with Volopay

Applying for a business credit line involves a series of decisions. We recommend you avail our corporate credit limit in case of genuine requirement. Because if you use up your credit limit without thinking about the repayment options and future plans, you will spend more than what you earn.

Therefore, before heading for a final decision, answer the following questions for yourself

- What is your primary motive behind choosing to opt for a credit line?

- What activities/tasks/projects will you be financing with the credit granted?

- Does your business have enough financial resources to repay the amount sanctioned?

- Who are your top buyers and suppliers? What percentage do they contribute to your annual growth rate?

- What are your payment terms with your suppliers and customers?

- Have you incurred any bad debt in the past financial year or quarter? If yes, how did you recover the amount from your creditors?

- Do you try to manage to lower your operating expenses?

- Do you agree with the business line of credit terms and conditions?

Therefore, before we do your credit assessment, do it for yourself first!

Getting a business line of credit can significantly fuel your business and profit-generating areas. You can boost your slow-moving business and optimize your pressing points in the workflows with its proper utilization. Through the business line of credit for small businesses, you can bridge the gap between your cash cycles, maintain enough inventory for year-round business sales, and finance those key performance indicators which instantly amplify your growth trajectory.

FAQs on credit line

How do I increase my credit line provided by Volopay?

Volopay allows you to increase your credit limit that was previously sanctioned. However, this limit is subjected to various factors like your company's existing repayment history and credit utilization pattern on the platform.

To increase the credit limit, go to your dashboard and click "Credit." Below your credit balance, there's an option for "Request credit increase." Click on it, and you will be redirected to a "Credit request" form. The form requires you to fill in the credit amount required and the reason for the credit request.

Where can I use my business line of credit?

Your business line of credit can be used to fund short-term activities or projects. Or day-to-day expenses like business travel, digital marketing, subscriptions, virtual card payments, and more.