Is a Business Line of Credit a Good Idea? | Small Business Loans and Advice
If your business is struggling to make ends meet, a business line of credit may be the right solution. Similar to the way a credit card works, a business line of credit allows you to borrow funds up to a certain amount and pay interest on only the money you borrow. After repaying the funds, you can continue withdrawing more money on the line. "A business line of credit can be crucial to help a business take advantage of an opportunity or weather a crisis," says Gerri Detweiler, former education director for Nav, a business credit and financing resource. "It allows you to borrow only what you need, up to your credit limit, and only pay interest on the money you have borrowed." As long as you can qualify and use the line of credit judiciously, it can be one of the best tools available to yo...
