A business line of credit is a type of financing that allows you to spend, payback and reuse capital as you need it. Let’s say you’re approved for a $10,000 business line of credit. You don’t need to use those funds right away. If a month after approval you find you need $1,000 to buy inventory, use $1,000 from your $10,000 credit line. You’ll only be charged interest on the $1,000 you borrowed. As you pay back the $1,000, your credit line will increase up to your original $10,000 limit.
A business line of credit is a financing method to sustain success when your business needs cash to pay employees, cover costs or invest in projects that will grow your company. Additionally, business lines of credit help you handle emergencies or explore new opportunities, offering the peace of mind and security you need to manage your cash flow.