A business line of credit is a flexible form of financing that is used by many small businesses. It can be accessed as needed (as long as you haven’t hit your credit limit and it is used for approved expenses), similar to a credit card, but has many advantages over a credit card.
For example, you can transfer money from your line of credit directly into your bank account, but when using a credit card, a cash advance usually comes with hefty fees. Plus, credit cards tend to have higher APRs and shorter repayment terms.
According to the 2021 Small Business Credit Survey, 38% of small businesses have sought financing to expand, pursue a new business opportunity, or acquire business assets. Using a business line of credit can help you stay competitive. Here’s how!
Opportunities sometimes arise for small businesses that can be beneficial for your business growth, but you need funds to proceed. Often, a line of credit can provide the cash necessary for these opportunities, whether to acquire new product lines, bid on a large project, or expand your inventory and sales.
Sometimes the way to stay competitive is to innovate. Getting ahead of the competition is critical to building a thriving business—and the key to staying competitive is innovating. Innovation, however, often requires financing. Extra cash from a business line of credit can give you the freedom to tap into innovative ideas and pursue new products or services that can allow you to grow and thrive as a small business.
At First Independent Bank, growing businesses rely on us for business loans that can help expand operations and services offerings. We understand that you need fast answers from bankers who take the time to know you and your business needs. Since all of our loan decisions are made locally, you get quick responses and a friendly face to work with.