3 Benefits of A Business Line of Credit
By Derrick Bailey
, Vice President, Business Services
small business owner, you know that a steady cash flow is critical to the
success of your business. But cash flow issues, off seasons, equipment
maintenance or the need to purchase additional inventory can leave you reaching
for a high-interest credit card or pulling from your personal account to make
ends meet. A line of credit can be an excellent method for financing your
business, giving you the peace of mind that additional capital provides. Below
are three key benefits to opening a business line of credit.
access to cash: First
and foremost, a business line of credit gives you quick access to additional
capital, whenever it is needed. Telhio Credit Union offers business lines of
credit that can be used for payroll, working capital or short-term payable
obligations, as well as a revolving line of credit to finance your business.
Protection of your personal assets: With a business line of credit, you won't need to dip into
your personal accounts to keep your business afloat, therefore reducing your
personal liability to your business. And, keeping your personal and business
finances separate will give credibility to your business, and help you better
manage bills, taxes and other payments.
track of your expenses: Keeping
track of your expenses is an excellent way to establish a budget for your
business, and with a line of credit, this is easy! Take time to review your
detailed transaction list each month so you know on what, when and how much
your business is spending. Use this information to plan for your quarterly
budgets, or to better determine in what ways you can spend less and save more.
your small business to succeed. For more tips, resources or guidance on
navigating small business success, contact a member of
Telhio's business services team, or give them a call at (614) 221-3233.
more benefits of a business line of credit, read "5 Ways a New Business Credit
Line Can Benefit Your Business" on the Small Business