Business Line of Credit
With a business line of credit, you have continuous access to the capital you need for ongoing growth. Rather than a one time, fixed amount, a business line of credit allows you the freedom to take as little or as much financing you require at any given time. Additionally, interest is only accrued on the amount you choose to borrow. Similar to how individuals use their credit cards, once the amount borrowed is paid in full, or if you take only a portion of the maximum line of credit, you will still have credit available to you. This is in contrast to a fixed loan where you accept the entire amount and once it’s paid off the loan is closed.
Managing cash flow, maintaining or increasing inventory levels, and funding an unexpected expense are just a few examples of how small businesses can leverage the benefits and flexibility of a business line of credit.