As a small business owner, you've likely experienced unexpected costs and temporarily slow sales. However, these obstacles don't have to put you in bad economic standing. Luckily, you can overcome them with a bit of planning and the help of a line of credit. Learn more about how this financial service can help your business below.

How Can Your Business Benefit From a Line of Credit?

1. Financial Flexibility

With a line of credit, you'll have the opportunity to borrow from a large amount of money, transferring the funds directly into your bank account like cash. Unlike a credit card, you won't have to pay additional fees for a cash advance. Additionally, a line of credit allows you to only take and pay interest on the money you need, whereas a loan requires you to take the entire sum at once.

2. Freedom to Spend

If you apply for a business loan, you'll need to specify to the bank or creditor what you'll be using the funds for, and you won't be allowed to deviate from that plan. However, you don't need to make any promises for a line of credit. You're simply given the funds to use for whatever you might need at the time, whether that's new inventory, contract work, or operating costs.

3. Low Fees

On average, lines of credit offer business owners lower interest rates than short-term loans. That means you'll spend less over time when paying back your debt. Business credit cards also feature higher APRs, and they require you to pay back the money over a shorter period. If you stay on top of payments, securing a line of credit could also boost your financial standing by improving your credit score.

If you’re interested in taking advantage of this financial service, turn to The Missouri Bank in Wentzville, MO. They have over 80 years of experience providing reliable help to clients throughout Warren, St. Charles, and Gasconade counties. Visit their website to learn more about their online banking program, or call (636) 327-4900 to ask about their financial services.