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Return To Cash Flow Article Archive   ELOC - Corporate Credit -Equity Lines Of Credit - To Help Your Business Cash Flow By Wm Cole Smith Corporate Equity Lines of Credit are established by one or more lending institutions, banks etc. This type of business credit allows the business owner to provide for a safety net for the business in critical times. The funds can be used for what ever the business needs, Cash flow short falls, payroll, and seasonal periods. ELOC's can and should be considered from the day your start your business so that your will be prepared and things are in order for your business when it comes time to applying for your Business Credit lines. In most cases your business will need to be incorporated and established for at least two years, develop a strong vendor based that reports your trade references to Dun & Bradstreet. Plan your goal for obtaining credit and vendors from day one. If you are not sure if the vendor is a member ask, if not ask them to report, if they do not report find a vendor that does. it will pay off in the long run for you. Get your Duns number for your business from Dun & Bradstreet as soon as possible. As the corporation ages and maintains good trade lines with your vendors the amounts of credit can and should increase, a maximum loan amount is unlike your personal home equity loans, the ELOC is based on the amount of your reporting trade lines and payment history. So if you are buying things for your business on credit make sure they report! This ELOC or Equity line of credit from your bank or banks permits the borrower to use the money as needed without re-applying each time for a new bank loans. When considering to use your ELOC Corporate credit Line, my recommendation would be not to use more than 30-40% until you have establish the amount of credit you are looking for in your business. Borrowing is an easy process like writing a check and the business gets the money as the business needs it. The Corporate Credit ELOC is paid back over a period of time either principle and interest or interest monthly. This will be determined by you and the lender. In most cases you will only have to pay the interest payment. Again, I would recommend paying the ELOC down as you can to save money on interest payments that can be used for your business later. The interest rate varies from one lender to another. Commercial interest rates are higher than consumer rate because of the risk associated with the unsecured commercial Line of credit. The business ELOC will be tied to prime rate plus points. This is a great way to borrow for your business than any other methods of borrowing, such as hard money loans, or personal loans. Their fees can be very expensive. Corporate Credit ELOC's are available in most states. Look for additional articles about ELOC's or Equity Lines of credit solutions, I will be releasing various articles to assist with a better way to get financing for your business. Good Luck with your Business & ELOC Needs!!!!! Cole Copyright 2008 Wm Cole Smith Author Wm Cole Smith eloc.com wmcolesmith.com Entrepreneur/business owner for over 19 years. My expertise is Internet technology but financing is a necessity to survive for a business the reason for building http://www.ELOC.com A site to help other business owners to avoid cash flow situations as i have over the years. Http://www.ELOC.com will provide you with more information regarding Equity Lines Of Credit on a variety Equity related opportunities Corporate Credit , Home Equity Line Of Credit, Commercial Equity Line Of Credit http://www.eloc.com is affiliated with my own consulting company - ELOC Capital & management Group Corp. Located in Irvine CA If you would like to learn more about me you can visit http://www.wmcolesmith.com keywords: Equity Lines Of Credit | ELOC | Corporate Credit | Business Credit | Business loans | Shelf Corp Financial Statement Audit

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