Business Loan vs Line of Credit
A Line of Credit provides the flexibility that a business loan cannot, while also being a cheaper alternative. Unlike a business loan, a line of credit only charges you interest on the amount you draw down, saving your business money. Also, once you use a business loan, the funds are then gone, however once you repay your line of credit you can use the funds again & again. This means more growth and stability for your business.
What do you need a Line of Credit for?
Grow your business
A line of credit can be a really flexible option when it comes to wanting to grow your business, especially if you want to approach growth in stages, and build slowly. You can have access to your full available credit amount, but only draw on what you need, when you need it. And only pay interest in the part you need too. Grow your business on your terms.
Grab opportunities
You never know when the next opportunity is going to come along, but having an available balance of cash available if you need it, means you don’t need to miss out on them when they do. Perhaps it’s a bond on your new dream premises that’s just become available, or perhaps a big contract you need to outlay for materials in order to accept it.
Fill cashflow gaps
Every business has its ups and downs when it comes to cash flow. Cash flow gaps don’t usually mean its not a great business, it simply means there is a time difference between when money comes in and when it goes out. Get smarter about how you manage your cash flow and fill those cash flow gaps when they arise with a line of credit.
