Business Line of Credit (B-LOC):  

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A business line of credit gives you flexible access to money that you can borrow, repay, and borrow again as needed.

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Three Types of Business Lines of Credit

• Unsecured Line of Credit: You do not need to provide collateral (like property or equipment). Lenders approve you based on your credit history and revenue.

• Secured Line of Credit: You must pledge a business asset as collateral. Because the lender takes less risk, this option usually offers lower interest rates.

• Invoice Line of Credit: You use your unpaid customer invoices to secure the funds. The lender advances you a percentage of the money you are owed while you wait for clients to pay.

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Three Use Cases

• Smoothing Cash Flow Gaps: You draw funds to pay employee wages and rent during a slow sales month, then repay the balance when business picks up.

• Buying Inventory in Bulk: You borrow money to purchase extra stock at a discount before a busy holiday shopping season, then pay off the debt using the sales revenue.

• Emergency Equipment Repairs: You tap the credit line right away to fix a broken delivery van or office computer system so your daily work does not stop.