A bank line of credit is one of the best things to have if you are a small business. It allows you to draw on pre-approved funds to not only meet routine operating expenses, but it can also be there for short-term working capital needs like plugging unexpected cash flow gaps, growing accounts receivable and inventory issues.
Business owners can borrow up to their pre-approved credit limit at any time and for any reason, usually by simply writing a check. As the credit line is repaid, funds become available for use again as needs arise. Interest rates on credit lines are generally favorable, and having a line of credit can help improve a business’ credit rating.
If possible, it’s a good idea to have a line of credit in place before you actually need one. The process of applying for and maintaining an adequate line of credit amount is sometimes difficult, so give yourself plenty of time to apply for one, or to increase the line you have... Read More
