Business Lines of Credit — Advanced Techniques

Business Lines of Credit

Many people use business lines of credit very much like they are standard unsecured loans. There are however better uses for these. We will be discussing some of these advanced techniques in today’s article.

One of the best uses for business lines of credit is to stabilize your monthly expenses. Many people will only use their credit line for expenses which are not immediately covered by their readily available cash. However I do not recommend you do this instead you should take all incoming receipts and place them into savings while paying for all of your expenses through your credit line if possible. This provides two benefits the first of which is that you will gain interest on the money which you keep in your savings account, while not paying any interest on your line of credit assuming that you paid off during the grace period and you will also have a powerful accounting tool which we will discuss further now.

By running all of your expenses through your credit line you will have a detailed accounting of all of your expenditures in one easy to use and reference place. Most lenders will have online access to your account where you can find an itemized view of all of your transactions in one place with the date of the transaction included. Once you have this information readily available it is simply a matter of exporting it into your preferred business accounting software and making a few modifications to make it fit within your accounting scheme. In this way you can use these reports to better understand in greater detail where you are spending the most money and where you can make improvements.

Also if you are using your line of credit to pay for all of your monthly expenses and then pay off the balance each month to avoid interest you gain one additional benefit. You will improve your credit score has the lender reports all of these transactions each month to the major credit reporting bureaus. By doing this you will not need to spend any money on interest but you will also increase your likelihood of obtaining large-scale loans for your business expansions in the future and paying more competitive interest rates on those loans when you obtain them. All of these are good reasons to follow these techniques and I highly recommend that you do so with your own company.

For more information, go to Business Lines of Credit at

Business Lines of Credit — Advanced Techniques was last modified: September 30th, 2011 by Amit Kraidman
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3 Responses to Business Lines of Credit — Advanced Techniques

  1. Keisha says:

    Lenarnig a ton from these neat articles.

  2. Linus says:

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