Keep your business moving with a line of credit

Keep your business moving with a line of credit

The right finance option can give your business more flexibility.

Laura Orchard
Laura Orchard 06 Feb 2022 ・ 2 min read

Even with plans in place to manage your business finances, sometimes things get tight.

When you need to bridge a cash flow gap or make the most of new opportunities, a business line of credit facility can be a handy solution to keep things moving forward.

Here’s how a line of credit can offer greater ongoing financial flexibility.

What is a business line of credit?

A line of credit acts as an extra cash buffer and gives your business easy access to funding up to a certain limit.

Unlike a traditional business loan, businesses typically only access the portion of funds they need from a line of credit.

Once you repay your withdrawal (known as a drawdown), your line of credit is replenished and can be tapped again for future expenses.

What can I use a line of credit for?

A line of credit is an ongoing solution that can be used for almost any business purpose – including activities that help you manage daily cash flow.

Common uses for a business line of credit include paying staff wages, covering invoices, buying urgent stock, taking care of unexpected expenses and paying suppliers.

What type of businesses use a line of credit?

Line of credit facilities are an increasingly popularbusiness finance solution for small business, largely due to their great flexibility.

If you own a seasonal business facing quiet months, or want to invest in new technology, equipment, or inventory to help grow your business, a line of credit could be useful.

Speak to an expert

Whether it’s used to balance cash flow or for growth initiatives, a line of credit could give your business the ongoing access to funds it needs.

Even if you have a less-than-perfect business credit score, speak with a Liberty Adviser today for help to find a solution that matches your needs. You might be surprised at the options available to you.

Laura Orchard
Laura Orchard Author
Laura Orchard is a financial writer at Liberty with over eight years of professional writing experience. She is passionate about simplifying complex concepts to help inspire financial freedom. Laura has a Bachelor of Media and Communications from Deakin University.