A business line of credit can have many benefits, including:

• Flexibility: You can use a business line of credit for a variety of purposes, such as: purchasing inventory, covering payroll, investing in marketing, and jump starting growth initiatives.
• Cash flow management: A business line of credit can help you manage cash flow and balance business cycles. You can use it to cover short-term financial needs, such as unexpected expenses or when customers are slow to pay.
• Flexible repayment terms: You can often pay the minimum amount due during a slow month.
• Interest is only paid on the amount used: You only pay interest on the portion of the credit you use, plus fees.
• Fast turnaround: Funds are available as soon as eligibility is approved.

Sometimes you may want your business to access funds when it needs them most or when the demands for working capital increase without having to always apply for a loan when needs arise.

A business line of credit allows you to easily access an already established amount of funds to use as the need arises. As you repay, funds continue to become available as long as you don’t exceed your credit limit. Interest is only charged on the amount of funds used at a particular time, and not on the full line of credit amount. All payments and interest are based on any active balance carried on the line of credit.