No matter how stable a company or an industry may be, there’s always a chance something unexpected can knock it off balance. A surprise turn of events can cause difficulties, especially with the cash flow cycle. The best way to minimize the damage is to have contingency plans; this is where lines of credit come in. Similar to a credit card, they allow you to borrow cash when needed from a set limit and they won’t charge you a fee or interest unless you make a withdrawal. To learn more about why these are so beneficial, consider the following.

3 Advantages of Having Lines of Credit for Your Business

1. Versatility

With a line of credit, you can choose how much money to take out when you need it. If you suddenly need extra inventory or a piece of equipment requires repairs, you can use it to cover these funds. If not, you can leave the line alone; you don’t have to use the money until it’s truly necessary.

2. Affordability

As mentioned earlier, you pay interest only when you withdraw some cash. Traditional loans don’t offer this kind of flexibility; instead, lenders immediately provide the money and you must repay it, along with interest, by a particular timeline. It doesn’t matter if you don’t use it. With a line of credit, you don’t have to pay the interest if you’re not taking any money out.

3. Strategy

Getting a business loan can be difficult, especially for new and small companies. Although there is a myriad of factors, part of the denial can be attributed to a poor business credit score, which can simply be caused by having little to no business credit history at all. So, not only does having a line of credit make things easier for you right now, but it also helps you build a favorable history, which you can then use to expand your business in the future.

For any businesses interested in obtaining lines of credit, call P2 Business Solutions at (203) 564-9016. They’ve recently partnered with Kabbage, a leading online lending service that specializes in small businesses. Based in Stamford, CT, P2 Business Solutions has a decade of service and agents throughout the nation, so you can trust they can accommodate your company’s needs. Aside from short-term financing, they can also help you with content marketing, online advertising, and website creation. For more information about these services, visit their website.

Thinking about giving Kabbage a try? Apply Today!