Introduction
As an online entrepreneur, you should prove that your idea is able to produce money. Only this way, you will be able to access the equity line of credit. Usually, the webmasters only have technical knowledge about the internet niche they are specialized in, but when it comes to equity line of credit, they are not so great. In other words, it is one thing to start a site by you and to make some money with it, and it is another thing to have a professional online business with employees. This is why the majority of equity line of credit requests are rejected by the banks, and webmasters wonder why they were not approved for such facility.
Step 1
The good part is that the companies approving the equity line of credit realized the potential of such businesses, so now they are ready to approve such credit facilities and to help the clients to use their money wisely. Especially in the technology area, if we are talking about web and mobile applications, a simple idea could turn in a million dollar profit, but only as long as good people are used for the respective project, and the bank might aprove the equity line of credit in this case.
Step 2
The equity line of credit is usually approved for people that want to open an online store in specialized niches. What is a specialized niche? A site selling clothes or cell phones might not be so attractive for the investors, as the competition is huge and the required investments are high. However, if you have a smart idea of selling some new products that were never sold online before, you have increased chances to succeed.
Step 3
If you look at your business only as a local initiative, than it would probably remain local. The companies prefer to approve the equity line of credit for businesses that have an international perspective. This is why you will have to state your ambitious plans in the credit application, and to show the credit company how do you plan to take your business on an international level. During the current days, businesses in the area of software, web technologies and ecommerce are considered, but this does not mean that you won’t be considered if you have some interesting ideas in other niches.
Step 4
Some corporations realized the potential of small businesses, so they though about creating sites that help other sites to grow. You can find such a site called “startup incubator”, and to present them your idea. The advantage is that, besides the equity line of credit, you will also benefit of advanced support and advices, from the design of your site to the marketing strategy and optimization.
Step 5
However, the commissions for such services are high, and the mother-company might try to trick you to sell them your idea for a small price after a while.
Tips
The equity line of credit is approved by the financing company if you have a smart idea, and a good team to develop it. As long as it has potential and you can prove you have the necessary resources to put it into practice, your chances of being approved for such a loan are high.
