One of the biggest problems that every business faces is an intermittent cash flow, and the uncertainties of business constantly cause interruptions to incoming revenues.
One of the best ways of handling these shortfalls is with a business line of credit, because it provides a readily available option for accessing funds and handling cash flow shortages.
What is a business line of credit?
A business line of credit operates in much the same way as a credit card does, because you have an available balance that you can draw on to cover cash gaps, and you can pay off any money that you have borrowed against the line of credit every month. The one outstanding feature of the business line of credit is its flexibility, because you can use the money for any purpose, at any time, and then repay it at your convenience.
How a business line of credit works
Whenever you use money from your available credit, you will have the option of paying back some or all of the money which you used at the end of the month. By making regular payments on the withdrawn portion of your funds, your balance will remain available and you can continue to use the credit. The only time you can’t use your business line of credit, is when you have maxed out the available balance provided to you, and your outstanding balance is zero.
Advantages of a business line of credit
The flexibility aspect of a business line of credit has already been discussed above, but in addition to that, this form of financing can be approved literally within 24 hours if you have a strong business credit history. This is much more preferable than a traditional bank loan which might take months to arrange, and which can only be used one time, as opposed to the reusability of a business line of credit. There are also no strings attached to a business line of credit, which means the money can be used for any purpose whatsoever, without having to justify it to the lender.
A business line of credit with Integrity Financial Capital
If your company would benefit by a business line of credit, you should contact us at Integrity Financial Capital. You may qualify for a business line of credit that will give your business the financial freedom it needs to operate smoothly and grow to the next level.
