Business & Finance Finance

How to Apply for a Business Line of Credit

    • 1). Build up a good credit rating for your business by paying your vendors on time. This generally takes 18 months to two years to accomplish. Some banks have stricter requirements. For example, as of November 2010, Wells Fargo requires businesses to be at least four years old.

    • 2). Gather all of your financial documents for your business. This includes tax returns, tax ID number, reports that show annual revenue and sales amounts, initial business registration documents that show when the business was created and all business bank account numbers with balances. You also need the business address, business phone number, business fax number, list of ownership type, number of owners and the names, addresses, phone numbers, income, bank accounts and ownership percentage for each business owner.

    • 3). Take all of your financial documents to a local bank branch to apply for your business line of credit. Use the documents to complete your application for the account. Typically, you get a response within one week. If you are approved, there is generally an account-opening fee, which varies in amount by bank.

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