Flexible business lines of credit are useful financial options to help you run your business during short-term cash flow crunch. In today’s business climate, smooth cash flow may not always be possible. If your cash flow is interrupted temporarily, you can use your company’s line of credit (LOC) for any business purpose, so you don’t have to miss out on an unexpected business opportunity or limit your marketing spend.
You can use business lines of credit to:
- Enjoy quick access and convenience, since you won’t need to reapply every time you need to use your revolving LOC (line of credit).
- Save money over a credit card, since typical credit cards (both business and personal cards) have higher interest rates). Your credit card can be great for a business lunch, but for operational funding, consider an LOC.
- Act as a financial cushion for your business. This means you won’t need to put off spending to promote your business, run daily business operations, take advantage of sale pricing on components for your products, buy office equipment for your service business–and more.
- Build your business credit rating to give you more options for future business financial needs and help you receive good interest rates on loans, business credit, and more.
- Get a higher credit limit with a secured line of credit. Business lines of credit are generally unsecured, but when you need a large credit line, your lender may require collateral.
- Paying interest on the funds you use only, rather than the credit line’s limit.
- Thrive through the off-season, if your business is seasonal.
- Manage your cash flow, so that you can confidently meet payroll and operate your business through lean times.
Don’t let a short-term lack of business funds hold your company back. Explore your options for a business line of credit now–and you’ll be ready for anything.
Ready to apply for your business line of credit? Contact the experts at Coastal Commercial Lending today.