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.
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.
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.
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.
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.