For small business owners, accessing proper funding is crucial. Because you have so many options, including lines of credit, debit cards, and cash management tools, you need to understand how each works so you can use them wisely.  First State Bank in Russellville, AR, can help local businesses do just that by providing the following helpful information.

Business Lines of Credit

Unlike a loan, a line of credit offers a bit more flexibility. You can use credit to make purchases for your business on an ongoing basis, whether you need money for equipment or require funding for employee purchases. Provided you make payments on time, you can continue using your line of credit indefinitely. You can also save on interest by repaying the entire balance early.

Debit Cards

Because you draw from funds you already have with a debit card, you won’t risk your credit history due to late payments or other issues. Debit cards also have fewer fees associated, which can be useful for businesses making a lot of transactions on a regular basis.

Cash Management

While sufficient cash flow is important for a business to thrive, you need to know how to manage profits, too. With proper cash management, businesses will settle debts on time, purchase an appropriate amount of materials and equipment to avoid a surplus or shortage, and offer credit to customers who have been thoroughly vetted and deemed reliable. You should also consider investing any excess cash to increase your bottom line. While having enough money on hand is important, money that’s just sitting in a savings account isn’t being used to its fullest potential.

With more than eight decades of experience, First State Bank supports local businesses by helping them access accounting methods that work for them. Their team will help you assess your options and choose money management tools that will boost your bottom line. If you’re interested in opening up a line of credit, call (479) 498-2400 today. You can also visit their website for more information on the available options, including business checking and savings programs.