When should you get a line of credit set up for a business? (Select the best answer.)

A. When the company experiences its first unexpected expense or cash shortage

B. After the company has already used up all of the credit available on its credit cards

C. Before the company experiences an unexpected expense or cash shortage

D. Before the company's taxes are due for the first time

Question

Social Studies

Goodwin

11 April, 13:08

When should you get a line of credit set up for a business? (Select the best answer.)

A. When the company experiences its first unexpected expense or cash shortage

B. After the company has already used up all of the credit available on its credit cards

C. Before the company experiences an unexpected expense or cash shortage

D. Before the company's taxes are due for the first time

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Answers (1)

Know the Answer?

Gabrielle Simon · Answer 1

At a minimum, you'll need at least six months in business and $25,000 in annual revenue to qualify for a business line of credit. Although some lenders don't set a minimum credit score, borrowers most likely will need a score of 500 or higher to qualify.

After the company has already used up all of the credit available on its credit cards