Making money does not always mean having enough cash on hand. A business line of credit can help mitigate the effects of slow periods or other factors beyond your control. Having easy access to capital allows you to maintain inventory and necessary equipment.
Highly Adaptable Financing
A business line of credit is more flexible than other types of loans because it can be used for a variety of purposes, including covering unexpected costs like equipment repairs.
Is a convenient way to get the money you need, when you need it. With a revolving line of credit, you have access to a set amount of funds that you can use, repay, and then use again. This flexibility makes it a great option for business owners who need to manage their cash flow.
One of the best things about a line of credit is that you only have to pay interest on what you actually spend, rather than the whole amount you're approved for
Factors to Consider
Be mindful of your business line of credit's limit and interest rate, as well as your ability to make regular payments on what you borrow. If these elements are in sync, your line of credit will be one of the most low-stress forms of financing available.
At the end of every billing cycle, you will have the choice of either paying your full balance or making a smaller payment and carrying over the rest into future billing periods.
If you go for the carryover option, you will owe interest on that sum. Paying down your line of credit rapidly means you will ultimately
Why Consider a Line of Credit Over a Business Credit Card
A business line of credit offers lower interest rates and more flexibility than a business credit card. With a business line of credit, you can move money out of your line of credit and into your business checking account as needed, making it a more versatile tool for managing your business finances.
A business line of credit provides financial flexibility to make purchases as needed.
Interesting in finding out what your small business could borrow? Get started with SBS’S 5-min application https://sbsfg.com/biz-verify/