Overview of a Coffee Shop Business Line of Credit Loan

A business line of credit is a lot like a personal line of credit and similar to a business credit card. If you need working capital or cash for seasonal sales fluctuations you can tap into a credit line to meet those needs.

The advantages to having a credit line for your coffee shop are:

1. not having to pay for the credit that you have tapped into yet

2. have available cash when you need it

3. easy qualifying

Keep in mind that a credit line can be higher interest rate than a conventional loan and you may need to update your documentation if you don’t use your credit very often.

This is a great loan to have set up ahead of time if you know you will need the funds in the future. If your coffee shop also does catering or has seasonal business flucuations, a credit line can help with added payroll expense or to get through a slow period.

With a business line of credit you will need to have the following documentation and you may need to update the documents when you make a withdraw from the credit line. 

• Driver’s License of the owners of the coffee shop
• Business Plan
• The Business Debt Schedule
• Personal Tax Returns
• Coffe Shop Business Bank Statements
• Balance Sheet for all coffee shops that you want financing for combined
• Profit & Loss Statements for all coffee shops combined
• Personal Credit Score
• Business Tax Returns