WHAT IS A BUSINESS LINE OF CREDIT?

A small business line of credit provides flexibility to companies, unlike a regular business loan. With this loan, you borrow up to the preset limit and pay interest on whatever you borrow. You can draw plus repay the funds as you need to, but you can’t exceed your credit limit. It is similar to a credit card but geared towards businesses.

WHO IS A GOOD FIT FOR A BUSINESS LINE OF CREDIT?

A business line of credit is best used by businesses that need short term financing for reoccurring short term cash flow shortages. Some short term cash-flow shortage examples are business payroll, weekly or monthly inventory purchases, seasonal cash flow shortages, and unexpected business expenses. Business owners feel secure knowing they have access to emergency funds in the event of a spike or shortage in revenues.