Where a traditional loan requires business owners to pay back their amount in monthly installments, credit lines let you pay back your debts on more flexible terms. When looking at a business line of credit vs. a loan, credit lines are generally the superior option—especially for businesses with low working capital with volatile financing requirements.
Benefits of credit lines include:
- Easy Access to Short-Term Funding
- Flexibility in Application
- Credit Building Tool
- Continual Borrowing Capabilities
It’s no surprise that business lines of credit are the most popular financing tool for businesses looking to grow.