An operating line of credit is meant to help with short-term borrowing needs. For instance, if your business needs to finance inventory or receivables, or if your business is simply growing and you need some extra cash, then you may benefit from a line of credit.
Lines of Credit
Making sure you have money whenever you need it, a line of credit gives you access to cash when funds may be a little tight.
Flexible borrowing against your credit line
Because a line of credit is based on flexibility, you can borrow from it at any time. This can be useful if something unexpected happens and you need cash quick.
Repay your credit line without a fixed schedule
So long as you are able to make at least the minimum payments, you can pay off the credit line over the agreed upon terms of the loan.
Lower interest rates
A credit line can be a good option compared to a fixed loan because the interest rate may be lower. However, a number of factors can determine what your rates are, so it’s better to visit your bank directly to see what you can get approved for when apply for a business line of credit.