Private lines of credit are an alternative to the traditional bank lines of credit that have emerged as perfect travel companions to online mini credits. They are a type of open credits with a different relationship between the entity and the holder, and have their market since they cover a specific type of needs.
What is a line of credit and what is it for?
In general, a line of credit is a sum of money that a bank or a financial institution makes available to you at your request and that you can use in part or in its entirety for a certain time, usually within one or several years. (renewable) The entity lends you extra money in an account and charges you interest for the amount you use, only for the time you use it and until you return it. And so on.
The current market for this type of credit line is open and wide, and a small interest is paid to have the money available at all times, although much less than if you requested the money available with a regular online loan.
This type of product is almost always used by companies and freelancers to handle payments when they need to do so and do not have money in cash, although also families who have children studying or businesses that have received a subsidy, but have not collected it and need to pay it off. In the case of business it is perfect for advancing payrolls while waiting to collect from customers, or to pay suppliers or taxes with flexibility.
The idea is to have a balance available to face short moments of need.
Loans and credit lines online, easier than ever
Ordering a credit line online is very easy: there are many entities that offer both loans and flexible lines of credit. The difference is clear: a loan is money that you receive in full, and that you can repay at the end of the term or through installments. On a line of credit, you receive an account balance and use it in whole or in part, until the term expires, and during that time you are charged interest based on what you have used and for how long.
Credit lines can be ordered personally or for business, online, without paperwork or cumbersome bureaucracy, any day of the week and at all hours. You just have to compare the different products until you find the one that best suits your needs.