What is a business line of credit

A business line of credit is a revolving form of financing that provides businesses with access to funds when they need them. Unlike a traditional loan, where you receive a lump sum upfront, a line of credit allows businesses to borrow up to a set limit and repay the funds as they use them. This flexibility makes it an excellent tool for managing cash flow, covering unexpected expenses, or seizing new business opportunities.

One of the main advantages of a business line of credit is that interest is only charged on the amount drawn, making it a cost-effective solution for businesses that need occasional financial support. Whether you’re handling seasonal fluctuations, managing payroll, or funding small projects, a business line of credit ensures that your company has ongoing financial security.