Benefits of a Credit Line for Your Business

No matter how big or small your business is, you likely know the power of having ample cash flow. While it would be nice for customers to pay invoices on time (or even early!) and for your vendors to have more flexible payment terms, these things aren’t always possible. When cash flow issues arise, things can get tough.

One of the most common solutions to cash flow issues is a small business loan. While popular, loans aren’t your only option. You may find that business lines of credit work better for you. Here’s what you need to know.

What Is a Line of Credit?

A line of credit is a pool of money that a lender gives you access to for business-related needs. It functions almost like a credit card, but often with better rates. You can draw on the pool of funds whenever you need up to the maximum balance. As you repay the funds, your available balance replenishes. You can reuse the line as often as you need until you decide to close it. (Click Here To Learn More)