Are you thinking of funding your import business through a business line of credit? Well, it is important that you familiarise yourself with this kind of small business loan before applying for it.
A line of credit is the readily available, revolving facility that you can access whenever you need it without a set-up cost. In the wake of approval, you can easily utilise the loan within your approved credit limit.
You can repay the loan in minimum regular payments or in full. An interest fee typically comes in handy depending on the amount borrowed.
Furthermore, you will not be subjected to any charges in the event your account is not in use.
How Does Import Business Line Of Credit Help Importers?
Import business is inherently a demanding venture. It requires a lot of patience, adaptability, flexibility and confidence. Most manufacturers usually demand advance payment as well as shipping costs before processing shipments.
After fulfilling the payment requirements, you may still have to wait longer for your goods to be delivered to your preferred destination. Furthermore, after receiving your order, it may still take you longer to sell out your inventory, thus you may not get back the capital used to purchase stock in time.
A business line of credit can help you overcome the challenge of outstanding payments by providing you with adequate funds to keep your import business running smoothly despite not collecting all your outstanding payments. You can use the funds from a business line of credit to pay your suppliers, restock your products and expand your business.
How Line Of Credit Can Help Your Import Business
1. Purchasing Inventory
You can use the funds obtained from a line of credit to purchase new inventory without having to wait for your initial stock to be depleted. You can also use the funds to stock products that are on high demand to increase sales.
2. Countering sales slowdown
A line of credit can help you counter sales slow-down by providing you with additional finance to use in your day to day business operations to meet your daily business expenses. Occasionally, your import business may experience sales slow-down. This can lower your revenue and adversely affect your cash flow. You can use the funds acquired from a line of credit to stock trending products preferred by your customers without worrying about the remaining stock yet to be sold.
Read the related blog on “Plan your business cash flow the right way”
3. Having a great capital control
A line of credit enables you to access funds only when you need them. You are likely to manage your funds effectively when you access business funds at a time when you need to use it for your business expenses. For example, getting a line of credit when you need to purchase inventory may coerce you to use the funds effectively—only for the intended purpose, compared to accessing funds when you don’t have business requirements to meet. As a result, a business line of credit allows you to make growth-driven decisions.
Advantages Of Using Hubbe’s Line Of Credit
You can access Hubbe’s line of credit at your ideal time whenever you feel your import business needs a boost. Besides, you are able to use the funds from this facility within a day of application as Hubbe will have it processed and available for you within 24 hours of application.
• Flexible repayment terms
You can now start an Import business when your credit score is promising. For startups, you can get at least $2k-$25k with a repayment period of one year. With Hubbe’s line of credit, you will be able to counter sales slowdown by funding your next inventory. You can access this loan even at the most unexpected scenarios, thus helping you bridge the gap between cash inflows and outflows.
• Lower interest rates
Hubbe’s line of credit features appealing interest rates. Once granted, the interest from this loan will be accrued daily and charged weekly from 15.95%. Lower interest rates enable you to leverage your line of credit and increase your business profits.
There is no greater joy than being able to supply what your business needs even in most impromptu situations. The worries of the unstable market conditions, closure and going bankrupt is a nightmare many importers go through every sunrise.
However, with Hubbe’s line of credit, you can surpass the untold by securing your emergency, and urgent import business needs without any fuss. Sounds ideal, right?
Read the related blog: 7 reasons why every business owner needs a business line of credit.