What are some reasons to open a business credit line?

Answer by  patti (29325)

Businesses don't always have the available cash to expand inventories, enhance marketing efforts or make improvements in order to grow the business. A credit line affords that option.

Answer by  flamiss22 (5081)

There may be times when an unexpected great deal comes up and you need to close the deal right away and the cash is not available so your credit line will come in handy. Also it will make you seem more professional to your clients. You can also use it as collateral for loans.

Answer by  tamarawilhite (17883)

A business line of credit allows a company to borrow without the debt being owed personally by the business owner. It creates a pre-approved loan via the credit line. The business can then borrow what it needs when it needs it. This gives more flexibility than a large lump sum.