Advantages of Business Credit Cards as a Line of Credit
Advantages of Business Credit Cards as a Line of Credit
It is possible to take the former and then attach it to a credit card. It may be hard to think of it that way at first, but what you have would undoubtedly be a portable line of credit. The advantages of this are as follows.
Speed
As long as you have a business credit card tied to a LOC, there is no need to wait for approval each time you wish to withdraw. With typical LOC loans, on the other hand, you would be required to show documents and such for each time you tried withdrawing above the preset amount.
Flexibility
There are no restrictions on what you pay for, which means you could be self-financing equipment, inventory, services, and a wide range of other stuff without having to get in touch with the lender each time.
No Collateral Needed
Where term loans, invoice-backed LOC, and equipment-backed LOC get tied to some form of collateral, you do not have to worry about the same when you are instead using a business credit card tied to a LOC. You only need to find an answer to the question, “How can I get a line of credit?”
