Line of Credit
How To Get a Line of Credit
A line of credit is an important step for companies, but it’s more involved than most business owners anticipate.
- The purpose of a line of credit is to allow for a business to finance short term and/or seasonal cash flow needs, such as the payment of vendors, the funding of a pension plan or the payment of taxes. Lines of credit allow businesses to function on a routine basis so as not to be hindered by such things as mail delays, unexpected collection issues, claiming of early payment discounts from vendors and other specific cash needs.