A business line of credit can help business owners manage cash flows, take purchase discounts, and reduce seasonal worries. A line of credit, as opposed to term financing, can be used and paid back several times during the term of the line. Some businesses will draw funds from a line of credit during an off-season and then pay them back when the business gets busy again. This easy access to funds gives owners a peace of mind and can also allow them to take advantage of opportunities that will pay dividends in the near future. Some business owners have a line of credit and never plan to use it. They just like knowing it is there just in case.
When there is a balance on a line of credit, only monthly interest payments are required. Most lines of credit are secured with collateral and the interest rate is variable. Talk to one of our loan officers to see if a line of credit might be right for you.