A line of credit is the most sought offer financing option for business owners. Why? The flexibility they provide is unparalleled. Whereas your typical term loan will give you one lump sum of cash to use — and to pay back over time — a line of credit is more like a reserve pool of a set amount.
You can draw capital up to that maximum when you need, and you’ll only pay interest on what you withdraw. Plus, as soon as you pay back what you owe, you’ll have the maximum at your disposal again. In short, it is a safety net for your business.
