Benefits of a Business Line of Credit

What are the benefits of having a line of credit for my business?

One of the biggest benefits is flexibility. The line of credit provides flexible funding options so the business can draw from, repay, and re-draw again as needed.

By having a line of credit for your business, you won’t have to worry about funding the important elements. Instant access to working capital allows the business owner to use the funds to meet commitments on schedule.

Another benefit is your ability to allow your business to adapt. By having a line of credit in your back pocket, you can take advantage of opportunities when they come your way.

What’s the difference between a line of credit and a loan?

A business loan is a good option if you’re looking for a lump sum of funds for a one-time purchase, whereas a line of credit provides ongoing access to funding.

Loans should be used to purchase long-term assets such as equipment or property. A line of credit is short-term funding to provide working capital for day-to-day operations.

Deciding on the right type of funding is crucial to the success and growth of your business. If you aren’t exactly sure where to start, book an appointment with one of our advisors.

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