A business line of credit is a valuable financial tool for a growing business. A line of credit is similar to a business loan, but offers much more flexibility to the borrower. With a business loan, the borrower is given the lump sum of money and is setup on a fixed payment schedule. Once the requirements of that payment schedule are met, the loan is paid off and the account officially closed.
However, the distribution of money and length of time the account is open us very different for business lines of credit. The credit line is approved with a set limit, such as $10,000. The borrower can take as little or as much out of that line of credit as needed. When the withdrawn amount is repaid, the credit line remains open and can be drawn from as many times as needed.
Due to the design of a business line of credit, it is perfect for helping businesses meet unexpected expenses. The credit like can also be beneficial if the business has a need to borrow money, such as to replace some equipment, and does not have time to wait for a loan approval. With the line of credit, the money can be easily accessed and used for those emergency purchases. Having the credit line accessible to the business can also prove beneficial in times of economic downturn when it might be difficult to obtain financing in other ways. As the Columbus Metropreneur notes, a business line of credit is can help your business grow since it is always there when you need it most.
To apply for funding for your small business, use the form on the right to begin the application process.
For more information, go to Business Line of Credit at http://www.unsecuredbizloan.com/business-line-of-credit