What is Business Line Of Credit?
Category: Business
1Definition
A flexible loan allowing businesses to borrow up to a limit and pay interest only on what's used.
2Context
Useful for managing cash flow and unexpected expenses. Like a credit card for businesses.
3Example
A business with a $100K line of credit can borrow $30K for inventory and repay as sales come in.
⚠Common Trap
Lines of credit can be reduced or cancelled—don't rely on one as your only safety net.
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