By Derrick Bailey, Vice President, Business Services
As a 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.
1. Easy 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.
2. 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.
3. Keep 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.
Telhio wants 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.
