What is the difference between a loan and a line of credit?

A line of credit is a predetermined borrowing amount that may be used whenever needed, repaid, and borrowed from again. A loan is determined by the borrower's unique needs, such as the requirement to finance a house or car.

Can you build with a line of credit?

Yes, you can get a construction line of credit.

Why would a construction company need a line of credit?

It assists businesses in managing cash flow at times of high expenditures, such as for insurance premiums, permits, licenses, raw materials, and wages.

How hard is it to get approved for a construction line of credit?

You will require excellent to exceptional credit. To lower their risk, lenders set a minimum credit score requirement for applicants for construction loans of 680.

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Amalia Santa Maria

Amalia Santa Maria

Personal Finance Content Writer and Editor

Copywriter and content creator writing technical articles on finance that allow an average person to easily understand and connect with financial concepts.

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