Running a business is an exciting journey โ but letโs face it, sometimes thereโs financial hurdles that make it difficult to accomplish all that youโre capable of. Thatโs when securing a business line of credit can come to the rescue. Whether youโre just starting out or been in the game for a while, this financial tool can be exactly what you need to take your business to the next level.
What is a Business Line of Credit?
Securing a business line of credit gives you quick access to cash with flexible repayment terms. Youโre able to withdraw funds as you need them against a predetermined credit limit, rather than receiving one lump sum all at once. This allows you to pay interest only on the funds you withdraw. Then, as you repay the funds, they are available for you to borrow again.
Simply put โ itโs a revolving credit account that allows businesses to borrow and repay funds as needed.
Benefits to Your Business
- Flexibility in accessing funds: Similar to a credit card, a business line of credit allows you to draw funds as needed up to a predetermined limit. This means you can access capital whenever required, whether itโs for a growth opportunity or an unexpected emergency.
- Cash flow management: Cash flow fluctuations are a common challenge for many businesses. A line of credit can help maintain positive cash flow during slow seasons or while awaiting payments from clients. Grow your capabilities with our cash management solutions that are built to keep your bottom line growing and put your cash to work for your business every day.
- Short-term financing needs: A line of credit is perfect for bridging gaps in cash flow, covering payroll, or managing inventory expenses without taking out a long-term loan.
- Low-interest payments: Remember, you only pay interest on the amount borrowed, making a line of credit more cost-effective than other financing options.
Ways to Use a Business Line of Credit
- Invest in new equipment or technology: Stay competitive by upgrading your business with the latest tools, machinery, or software to expand or improve business operations without the upfront cost of a loan.
- Expand inventory: Whether youโre preparing for a busy season or stocking up on high-demand items, a line of credit ensures you have the resources to maintain or grow your inventory levels.
- Hire more staff: Scaling your business often requires hiring additional team members. Onboarding new employees when expanding operations or entering new markets can add up – use your line of credit to cover onboarding and initial payroll costs as you expand your workforce.
- Marketing and advertising: Investing in marketing campaigns can drive growth and increase brand visibility. A line of credit provides the funds to execute time-sensitive advertising strategies without straining your budget.
- Take advantage of time-sensitive opportunities: From bulk purchasing discounts to entering a lucrative new market, opportunities often require quick action. A business line of credit empowers you to act swiftly and confidently.
A business line of credit is a versatile financial tool that can support various initiatives you have for your business. Its flexibility, affordability, and utility make it an excellent option for managing cash flow, addressing short-term needs, and pursuing growth opportunities.
Get the funds you need to grow your business today. Visit a financial center near you or call our Customer Care Center at 215.788.1234.
