Does a Line of Credit Make Sense for My Business?
A business line of credit is ideal for short term or unexpected working capital needs, helping small businesses to take advantage of opportunities for growth and to bridge a gap. For example: purchasing extra inventory to fulfill a large order or hiring seasonal employees to meet higher demands.
This flexible, revolving credit, as opposed to installment credit, is also great for offsetting seasonal fluctuations in cash flow, so if your revenue comes in ebbs and flows, a line of credit for business might be a smart choice to see you through the quieter periods.
What Are the Perks of Getting a Line of Credit?
A business line of credit– or revolving credit – is an alternative to installment credit that suits the unpredictability of growing a small business: