Cash flow becomes a problem for multiple reasons—slow paying clients, operation costs, a dip in sales—but having lines of credit available for your business is a game changer.

To start, it’s considered flexible “revolving” credit. It’s flexible because you can do whatever you want with the money since (like a loan) but revolving because you only have to use it when you need it (like a credit card). With a business line of credit, you don’t receive a large lump sum that you then have to budget out, you are able to use whatever you need at the moment you need it. It functions just like a business credit card, but you can access cash with it.

Business lines of credit keep you in charge and in control of your business. With lines of credit, you don’t have to sell company equity in order to temporarily increase your cash flow. This allows you to build your business ow you’ve always dreamed and without the interference of investors.

Opening a business line of credit is a relatively easy process and is often times more affordable than other financial products. For approval, six months of at least $50,000 in revenue is required which makes this a great tool for new businesses as well as old ones. The average rates are between 7% -25% which makes them cheaper than invoice financing, business credit cards and even short term loans. Also you only pay interest on what you have borrowed. If you have a line of credit for $50,000 but only borrow $10,000, you only owe interest on the $10,000. Also, limit replenishes automatically as you repay what you borrowed.

An amazing tool, business lines of credit allow you to always have capital on hand. They are perfect tools and financial vehicles for any kind of business structure and are natural compliments to other financing options (i.e. loans, business credit cards). It’s no wonder why many entrepreneurs recommend lines of credit.