Having an open business line of credit can be a tremendous asset for your small company. It allows you access to a package of funding that you can draw from when you need it the most. Business lines of credit work slightly differently to traditional business loans.
They are more flexible and permit you to borrow up to a specified amount. The amounts are usually between fifty and five hundred thousand dollars. You then repay only the amount you’ve borrowed, including interest, of course.
In times of emergency, a small business line of credit can be a lifesaver. Traditional bank loans need a fixed number of repayments over a specified amount of time. A revolving line of credit for your business works differently.