See how a revolving line of credit eliminates cash flow crunches.

Even successful businesses may face a cash flow crunch when invoices are due, but money owed by customers hasn’t yet come in. One way to smooth the crunch is with a business line of credit.

What’s a business line of credit and how does it work?

A business line of credit is a revolving line of credit that allows you to borrow up to an approved amount. As the funds are paid back, you can borrow more without having to apply for another loan. Interest is charged only when you draw funds from the credit line.
The most common way to access money from a business line of credit is through linked accounts, like with online banking.

What can a business line of credit be used for?

One of business owners’ favorite things about lines of credits is that the money can be used for any purpose. This is particularly helpful when they need to purchase supplies to launch a project or build up inventory before a busy season.

When should a business line of credit be used?

The best time to use a business line of credit is when your need for cash repeatedly fluctuates and those times when you need access to short-term capital.

When is a business loan better than a line of credit?

A business loan is better than a line of credit when you have one-time fixed expenses such as the purchase of a vehicle or equipment because you’ll save on interest.

Are business lines of credit secured?

Depending on lender requirements, a business line of credit may be secured or unsecured. If credit is secured, that means collateral is required. Unsecured lines of credit where no collateral is needed have higher interest rates since the lender takes on more risk.

How do you get a business line of credit?

Getting a business line of credit starts with filling out an application. At Consumers, our business lines of credit start at $50,000 with a low annual fee of $100. We also offer an option to repay interest only when needed. 

If you want a business line of credit, reach out to one of our commercial loan officers. Contact us online or call 800.991.2221.

 

All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications, and collateral conditions.