Business Line Of Credit

Borrow as little or as much as you need with a flexible commercial funding option. Apply for a business line of credit, or if you’re looking for something a little heftier, consider our business loans.

What is a Business Line of Credit?

With most traditional business loans, you borrow a lump sum that you pay back on a schedule (usually monthly installments). But business lines of credit enable you to access funds quickly and easily, only repaying what you use–much like a credit card.

Though they work similarly, a business line of credit is not a business credit card. It’s a type of loan that allows small business owners to access the funds they need more flexibly, and typically at lower interest rates when you work with a credit union. They’re good fits for small businesses that want to streamline cash flow and get funds quickly.

Minimum Eligibility Requirements

If you’re seeking less than $25,000 in funds, Greater Nevada Credit Union is here to help. For needs greater than that, we’ll refer you to Greater Commercial Lending, GNCU’s expert business lending subsidiary. Here are some of our key eligibility requirements:

At least one (1) year in business
Credit score of 625
Business annual revenue of $100,000
Must have a Commercial Share Savings account to become a member of GNCU

Ways to Use a Business Line of Credit

Take some of the stress out of managing your business’s money. Business lines of credit are helpful for streamlining many day-to-day financial tasks. Here are a few of the most common use cases.

Get working capital

Sudden expenses are easier to navigate with a revolving line of credit. Use yours to support endeavors that help your business grow: supplies, equipment replacements, and more.

Bridge cash flow gaps

Growing your business can be a bumpy road. If you foresee a potential for cash flow troubles further down the line, a business line of credit can help smooth things over.

Unexpected expenses

It’s always good to have emergency funds on hand. With a business line of credit, you can enjoy peace of mind knowing you’re covered for sudden expenses.

Simplify payroll

Business lines of credit can also be used for payroll purposes, ensuring you always have the funds needed to compensate employees at the end of the pay period.

Over AR/AP gaps

The accounts payable and accounts receivable gap problem is a common concern for small business owners. When those funds don’t line up perfectly, a business line of credit can help.

Overdraft protection

Never worry about overdrawing your business checking account again. A business line of credit can step in to cover transactions that would have otherwise overdrawn your account.

Benefits of a Credit Union Business Line of Credit in Nevada

Business lines of credit can give small businesses like yours more financial freedom. And when you open one with a credit union, you’ll enjoy a few unique advantages.

Revolving Line of Credit

Access up to $25,000 quickly and easily.

Drive Growth

Help your business thrive with extra working capital and easily cover business expenses.

Raise Credit Score

Build your business’s credit rating by spending and repaying small amounts.

Lower Interest Rates

Enjoy the benefits of a community cooperative–credit unions offer better rates on almost everything, including business lines of credit.

Flexible Repayment

Draw funds as needed and repay them over time, with optional automatic weekly payments.

Short-Term Funding

When you need funds quickly, a business line of credit is faster and easier to access than many other business loans.

How does a business line of credit work?

Like credit cards, but not exactly the same. Business lines of credit offer fast and easy access to the funds you need, as you need them, without locking you into a lump sum. You’ll have a credit limit, but you’ll only be responsible for paying what you use.

What type of line of credit do I need?

There are two main types of business lines of credit: secured and unsecured.

Secured lines of credit are guaranteed by collateral–for example, your business property or business equipment. Because of this, secured lines tend to offer better interest rates.
Unsecured lines of credit are not guaranteed by anything. Because of this, interest rates may be high, since there is no way for lenders to recoup money that isn’t paid back. The credit limit for these lines of credit may also be lower.

Is it difficult to get a business line of credit?

If your business is in good financial standing, accessing a business line of credit should be a straightforward process. However, newer businesses may struggle to qualify because they don’t have the benefit of steady revenue that older businesses may have.

How long do you need to be in business to get a line of credit?

At Greater Nevada Credit Union, we require businesses to have been in operation for at least one year in order to qualify for a line of credit. This is a fairly standard requirement, though other lenders may require at least two years in business (or even more, depending on where you shop).

Is it better to get a line of credit through a credit union?

Credit unions offer several advantages over traditional banks. Because they’re not-for-profit cooperatives, credit unions give their profits back to members in the form of financial perks: lower interest rates, better terms, and more flexible repayment options. Business lines are included.