What is a Business Line of Credit?
A business line of credit provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit and pay interest only on the portion of money that you borrow. You can draw and repay funds as you wish, as long as you don’t exceed your credit limit. A line of credit is similar to how credit cards work.
A business line of credit differs from a term loan, which provides a one-time lump sum of cash upfront, repaid over a fixed time period.
With a line of credit, you can keep reusing and repaying it as often as you’d like, as long as you make payments on time and you don’t exceed your credit limit. Most lenders allow you to repay your balance in full early to save on interest costs.
Line of credit borrowing limits typically ranging from $5,000 to $150,000 are smaller than a term loan.
Business lines of credit with lower credit limits are also typically unsecured, which means collateral such as real estate or inventory is not required.
Need to manage cash flow? Buy inventory? Having to pay for an unexpected expense? Then a business line of credit makes sense!
Does YOUR Business need a Line of Credit?
Business Loan Solutions has the best Line of Credit options for Business Owners!!