If someone doesn't yet have a business, what are the steps to acquire non-recourse business line of credit?
A loan is an amount of cash borrowed from the banks or financial institutions. Repayment of loan includes interest along with principal amount. Loan can be given to individuals or organizations. Interest from loan is the primary revenue source for the bank.
Answer and Explanation:
Steps to acquire non-recourse business line of credit-
1. Review credit score
Obtaining line of credit, reviewing credit score and financial history of the individuals is very important. If the person has high credit score, then the chances of getting line of credit will be more.
2. Available options
Comparing different lending options available in the market will help individuals to understand whether he or she qualifies for a line of credit.
3. Cost analysis
Different lenders charge different interest rates, usually non-recourse line of credit carry higher rate of interest.
After analysing lenders details, individuals can submit documents and apply for the line of credit.
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Learn more about this topic:
from Corporate Finance: Help & ReviewChapter 8 / Lesson 7