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Detach you social security number based credit personal from your EIN Employer Identification Number based credit business.
how to apply for government business loans
It is required for funding everyday expenses such as purchasing inventory, salaries, power, water, raw materials, and transportation. Due to a variety of factors, especially the market conditions, which may prevail at that time and difference in prices, a business may go through a phase where expenses exceed expectations and there may be a need to spend more than budgeted. At such times, you would need more funds so as to meet urgent expenses. This is where this line of credit comes into play. It is different from a business loan where you borrow a fixed amount of money and repay it in installments which are pre decided. This is the way to go if you are looking for a lump sum amount all at once. On the other hand, in a line of credit you don't have to repay a fixed amount each month. You have the flexibility wherein you can opt to pay the interest only, and leave the principal amount to be paid back when you gain a handsome profit out of your business. Working capital funding is much faster and easier compared to traditional loans provided by financial institutions and banks. For small businesses, it's an ideal option as it provides an opportunity to gain more revenue besides supporting them in their attempt to keep the operations running. RequirementsUsually, while applying for a loan you need a collateral, but for this type of credit, you may or may not need to use any of your properties as a collateral.