Florist Blossoms
Line of Credit Florist Blossoms
Author: Valerie Mellema
Date posted: 05.28.23

Some companies have the same level of business throughout all seasons of the year. In other cases, busy and slow seasons are simply part of the process. The owners of a floral company on the West Coast were well aware of this phenomenon and had made it through many slow seasons without any issues However, with the economy going through a lot and the struggle to make the business succeed during the COVID-19 pandemic, things were different one year. The slow season started, which was expected, but there wasn’t a lot of surplus to make up for it. It was clear to the owners that they needed to do something to save the business.

Choosing the Right Path to Take

 

Navigating a challenging period hadn’t posed problems before, but the current situation was undeniably demanding. The business owners were committed to keeping the business operational and weren’t inclined to shut down or sell. Therefore, a viable solution was imperative. The optimal approach was to secure accessible funds for both immediate needs and potential future contingencies. This precise objective directed their search for the ideal lender.

 

Although the conventional route of a business loan was an option, it didn’t align seamlessly with their circumstances. Hence, the florists explored alternative avenues for financing. Evaluating various companies that presented diverse possibilities, they ultimately determined that a business line of credit offered the most suitable framework to progress confidently.

Florist Blossoms

What Makes a Line of Credit Unique?

 

A line of credit attracted the owners for several compelling reasons. Firstly, the financing offered a versatile range, starting from as low as $25,000 and extending up to $250,000. Recognizing the necessity of a minimum of $100,000 to ensure smooth operations during the sluggish period, particularly if conditions failed to improve promptly, the florist company owners found this aspect appealing.

Moreover, the entire credit line didn’t mandate full utilization in a single instance. The company could withdraw funds as required, and the favorable feature was that interest accrued solely on the amount utilized. This approach kept payments manageable during phases of lower fund usage. Importantly, the absence of strict usage stipulations was advantageous, aligning well with the current circumstances.

Moving Forward with the Application

 

The florist business went through with the application for an unsecured line of credit. It was easy to meet all the requirements, such as having a credit score of more than 650, an annual revenue of more than $300,000, and at least two years in business.

 

Since being approved for the line of credit, this business has been doing great. Things improved after the slow season but the line of credit is still available if needed in the future. It’s a source of peace of mind even when business is booming.

Florist Blossoms
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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