What is a Business Line of Credit?
A business line of credit offers flexible access to funds when your business needs them most. Unlike a term loan, a line of credit can be drawn from and repaid multiple times during the life of the loan, making it a great tool for managing seasonal cash flow or unexpected expenses.
Many business owners use their line of credit during slower seasons and repay it when business picks up. Others simply like the peace of mind that comes from knowing funds are available if needed. It’s a practical way to stay prepared and take advantage of opportunities as they arise.
When there’s a balance on the line, only monthly interest payments are required. Most lines of credit are secured with collateral, and the interest rate is typically variable.
Our local lending team is here to help you decide if a business line of credit is the right fit for your financial strategy.
Benefits of a Business Line of Credit
- Purchase inventory when you need it
- Bridge the gap between payables and receivables
- Manage seasonal cash flow with confidence