A business line of credit is a crucial financial tool that allows businesses to borrow money up to a predetermined limit. Unlike a term loan, which has a fixed repayment schedule, a business line of credit offers more flexibility, as businesses can draw on the funds as needed and only pay interest on the amount they borrow.
Business lines of credit provide numerous benefits. They offer quick access to capital, helping businesses seize opportunities, manage cash flow fluctuations, and cover unexpected expenses. Additionally, they can improve a business’s credit profile and provide peace of mind, knowing that funds are available when needed.