Lines of credit offer several advantages that can be particularly beneficial for startups and small businesses:
Flexibility: Unlike traditional loans, LOCs provide the flexibility to draw funds as needed and repay them at your convenience. Cash Flow Management: LOCs can be used to manage cash flow gaps, such as covering payroll or unexpected expenses, without the need for a lump-sum loan. Building Credit: Responsible use of a line of credit can help build or improve your business credit score, making it easier to secure financing in the future.