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There are a number of options when it comes to selecting business revolving credit lines. These lines often take the same primary forms as personal revolving credit lines (credit cards, bank-issued lines of credit, etc), and generally follow the same principles.

Revolving lines of credit are credit balances that are not amortized; the credit balance may be paid or left unpaid at the will of the borrower for as long as he or she likes. What is required is interest, which is expressed in the form of an annual percentage rate and charged by the one-twelfth fraction each month. The interest rate can fluctuate depending on the terms and conditions of the lender. Lenders may offer other repayment options, such as minimum payments or other sorts of bases, but the general revolving credit formula remains intact.

Business credit cards are typically the first ones that a new entrepreneur will encounter. Business credit cards are a little more difficult to come by initially, because of the 500 or so business credit cards that exist, only about 60 of them are willing to extend credit to new or under-performing businesses (especially given the condition of the modern credit market). Business credit cards follow the same rules of APY and APR as personal credit cards, and offer comparable benefits

The other standard option of business revolving credit lines are bank-issued lines of credit. These are also difficult to obtain for a new entrepreneur, if he is looking at the large banks for his loans. The trick to obtaining and building credit in this fashion is to use small banks or credit unions. Small banks are going to be more likely to work with you and hear your pitch, rather than have you dismissed through the rules and regulations of the large banks.

This Business article was written by Mark Karavan on 11/20/2009