When running any company, it is helpful to secure a source of finance so that you are never in a sticky situation. Credit is always helpful here and, used correctly, is almost a lifesaver. So that you can maximise your limits, gaining access to even more cash, it is necessary to handle this matter in the right manner. Below, you’ll find several ways to maximise these lines of additional finance so you gain more credit options for your business.

Make It Personal

If you’re just starting up your company, it can be difficult to secure any kinds of loan simply because you have no history as a legal entity. Some financial service providers are happy to offer credit lines to anyone with a good personal record though. Although you may have to offer up something valuable as collateral (to reduce the risk for the lender), you’ll be able to borrow more money at a lower interest rate as a result. This might not be an ideal scenario, with your belongings at risk, but it is often all that is available to start-up businesses.

Think Short Term

General consensus among the business community is that you should only use corporate credit for short term purchases. Whether you’re in transportation or printing, make sure that you can pay everything off in a few months. Not only will this lower your total interest payments but it will also improve your history. By showing that you are reliable, you can take out a larger line of credit in the future. Typically, you should use this financial source to purchase stock or make an investment which will bring profit increases later on. In this way, you can use your added income to pay back the borrowed money.

Shop Around

While fairly obvious, not too many people put in enough time when comparing the different financial service providers out there. Keep an eye out for the following:

• Interest rates that are lower than other loan types
• Full repayment options free from added charges

Both of these characteristics will work together, helping you to secure additional finance without worrying about wasting too much on interest. First, you can safely repay back the amount owed without the interest building up over time. You can also pay everything back at once if you experience a financial windfall in the future.

Take Out an Overdraft

Lastly, you can take out an additional overdraft credit line on your savings or checking account. This is money that you can tap into if your bank account becomes overdrawn. Again, check interest rates and other terms and conditions to see if you can get a better deal. The right choice here will give you peace of mind that you can withdraw a little extra in an emergency without being heavily penalised for it.With any kind of credit line, however, be careful to watch what you owe and what you have to pay back. While credit can help your business, being irresponsible here will definitely hurt more in the future.