Lines Of Credit
A line of credit for a business is, in our opinion, one of the first things a business should obtain when starting a business. Lines of credit are simple. It’s similar to a credit card, and you typically access the credit line by writing a check. The interest rate is usually much lower than a credit card. A credit line is an amount of credit that you can access as you need it in any way you need it to grow your business.
For example, let’s say you obtain a $50,000 line of credit. If you need say $12,000 you access it and you still have $38,000 you can access at a later time. When you pay it down to say $8,000 then you have $42,000 more you can access. To maximize your credit lines it may take the help of a Business Loan Consultant. Credit lines can really come in handy to fill in the gaps for a business. Need to make payroll and a little short? Need to pay a vender or an unexpected repair? What about those slow times of year? Whatever the gap might be, the credit line can be a great back up.