Business Line of Credit
A business line of credit can be a valuable tool for small businesses that take a strategic approach to making sure they have access to the resources they require to meet day-to-day working capital needs and fill other short-term financial necessities. It allows them to apply and qualify today for borrowed capital they may need down the road. Many businesses use a line of credit as part of a larger capital access approach including short-term and longer-term financing to fuel growth and fund other revenue-generating projects.
Lines of credit are arrangements between lenders and borrowers that gives a maximum loan balance for the borrow to pull funds from. With a line of credit, you can borrow funds at any time as long as you don’t exceed the maximum amount. The largest advantage to lines of credit is their flexibility. You don’t have to use the total amount you’re approve for, which means you only pay for the amount you use.