When Should Entrepreneurs Consider a Line of Credit?
Timing is crucial when considering a line of credit. Here are some scenarios where an LOC might be the right choice:
Seasonal Businesses: If your business experiences seasonal fluctuations in revenue, an LOC can help you manage those periods more effectively. Expansion: When looking to expand operations, a line of credit can provide the necessary funds without the commitment of a long-term loan. Unexpected Expenses: An LOC can act as a safety net for unforeseen expenses, helping you avoid disruptions in your operations.