How to Get a Better Rate for Your Business Credit Line
You can always negotiate for your business credit line with your bank if you know how to do it. Put all the positive factors in your business credit line and start to gain a more favorable credit rate and term. What are the factors?
Good Rating
If your company has improved rating in credit, up date your bank about it. Give them the last information and your credit rating files. They will have the reason to give you more favorable rate because they see that your risk is lower than before
Obtain from the Same Bank
Don’t go to different bank to obtain business credit line. The best lender to offer you extension from your checking account is the bank that gives you long term credit. If other bank offers you better rate, negotiate with your current bank and tell what their competitor offers to you.
Security in Business Proceed
Inform your bank that you are ready to concentrate all the proceeds from sales to their bank, and see how they will calculate the decreasing risk of your business. It could bring down your financing rate. This is a basic risk management application in corporate credit concepts.
Combined with Vendor Credit Lines
When you have opportunity to get credit purchase from your vendors, get it on the first place. If your vendors not offer that to you, show your loyalty and yearly purchase data and ask them to cooperate. Compare their credit price with cash price; you will understand their additional rate for longer term of payment. If the vendors have a better rate compared to your bank, you may consider using their credit lines first before making overdraft withdrawal.
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