Birmingham Small Business.com

PR-Inside:

1. Timing is everything. At the risk of being redundant, nail down a dependable source of cash before they need it. If a great opportunity comes up, they want to be able to act immediately. If there’s an emergency, they don’t have time to start looking for funds. Either way, cash - or its equivalent - can make the difference. In short, opportunities don’t wait. And they can’t wait if there’s a crisis looming.

2. Make decisions from a position of strength. It is empowering to make a business decision knowing they have a definite pool of money to work with. It brings a degree of clarity that wishing, hoping and guessing can’t match.

3. Stay in control. In business, almost nothing can put them into a tailspin like a significant financial squeeze. If they have to make payroll or meet an unexpected expense, you’ll have to scramble to ‘pull forward- anything with a dollar sign attached. Would they feel more in control if they had a pre-approved line of credit that they could tap if and when an emergency occurred?

4. Changing market conditions. In recent months, top mortgage lenders have closed their doors or severely cut back programs for home buyers. Foreclosures are high. The current housing and mortgage environment is creating pressure on business in general. Unsecured credit is almost impossible to find. If they can find a line of credit today, don’t wait.

5. Convenience. What could be more convenient than having a pre-approved line of credit available that they can use with the ease of writing a check? They certainly don’t want to jump through a lot of hoops every time they need to use the money. For most people, ease of use, minimal hassles, and clear step-by-step processes are worth the investment. After all, how much is your time and peace of mind worth? Find a line of credit that is easy to get and easy to use.

6. Separate your personal assets from your business. Many entrepreneurs and small business owners fall into the trap of using their own money and credit to build their business. This can have a serious impact for the business owner. Consider the implications. A business owner’s personal assets and credit can be eaten up quickly if he or she acts as the bank. Also, personal debt can slam your debt-to-income ratios, which could limit them if they wanted to buy that new dream home. Create a line of credit for their business, instead.

7. Use Other People’s Money. Leverage is the name of the game. While they have to consider the cost of money, the leverage you gain by being able to use OPM can make the difference in creating wealth and positioning your business for success. A business line of credit can provide start-up capital, consolidate debt,  fund business growth, and replace personal money used to fund business expenses.