To apply for a line of credit, a Kerrville, TX contractor or shop starts with a short request: business name, time in business, annual revenue and the limit wanted. A funding partner then reviews bank statements, tax returns and credit, sets a limit and opens the line for draws. Bellshire Business Funding handles the first step and hands the file to partners, whose decision it is.
The application steps in order, what goes into a credit limit, an invented contractor using draws between two jobs, and how to keep a line open at renewal.
How to apply for a line of credit as a contractor or shop
Start with the number, not the form. A credit line should match a gap the business has already lived through: the days between buying materials or parts and getting paid for the work. Size it from a real job, then apply.
Invented example: a contractor buys $14,500 of materials for one job and $9,800 for a second that starts 12 days later; each customer pays 35 days after its job starts. At the overlap, $24,300 is out at once, so a $30,000 request leaves a margin without asking for a limit the business cannot use.
- Write down the limit and the gap it covers, with one recent job as the example.
- Send the request: by phone or the request form, with name, phone, email, company name, time in business, annual revenue and the requested amount.
- A funding partner asks for documents: bank statements, tax returns, a profit and loss statement, and a debt schedule.
- The partner reviews the file and, if it offers a line, sets the limit, the annual rate, any draw or maintenance fee and the renewal date.
- Sign, then draw only what a job needs.
The how it works page shows the same path from the Bellshire side, request by request.
What lenders look at when setting a credit limit
A credit limit is a judgment about how much the business can repay from its own deposits. A lender can weigh several things to set it:
- Average monthly deposits over the last six to twelve months, and how far they swing.
- The smallest balance in the account each month, and any overdrafts or returned payments.
- Time in business, with tax returns that match the deposits.
- Existing loan and lease payments, which take a share of the same deposits.
- The owner's personal credit, especially on an unsecured line.
- Collateral, if the line is secured: receivables, equipment, or a blanket lien on business assets.
Ask for a limit near the real gap. A line set far above it can still count against the business when another lender reviews a later request, even if it is never drawn.
Construction is one of the two largest sectors in the county. In 2023 the CBP put construction establishments with paid employees in Kerr County, TX at 217; 61.8% employed fewer than five people. The same count found 38 auto repair and maintenance shops. Construction employers at ZIP 78028 addresses total 157 in the 2023 ZBP.
Using the line between jobs and deliveries
A business line of credit earns its keep when every draw has a payday attached to it. The contractor in the example draws for each job on the day materials are bought and repays the draw when that customer pays.
| Draw | Amount | Drawn | Repaid | Days out | Interest |
|---|---|---|---|---|---|
| Job A materials | $14,500 | Day 0 | Day 35 | 35 | $177.28 |
| Job B materials | $9,800 | Day 12 | Day 47 | 35 | $119.82 |
The two draws cost $297.10 in interest together, and the line is back at zero once Job B is paid. A shop can use a line the same way for a parts order that arrives before the repair is billed.
A balance that never comes back down is a different need. If the line sits drawn month after month, a working capital loan with a fixed schedule can pay it down and open the line back up for job-to-job use.
Renewal reviews and keeping the line open
A line is open for a set period, and a partner can review it at renewal. At that review the partner can keep the limit, raise it, lower it, ask for the balance to be paid down for a stretch, or close the line. The record the business builds between renewals is what the review reads.
- Draw for specific jobs or orders and repay from them, so the balance rises and falls.
- Keep the operating account out of overdraft; returned payments are easy to spot in statements.
- File business tax returns on time, since a renewal can ask for the newest one.
- Tell the partner before a big change: a new partner in the business, a large new loan, a move.
- Pay at least the minimum on the due date, every month.
The request form is where a new request begins; the Bellshire blog has the other articles.
By Bellshire Business Funding · Updated
