A business line of credit (BLOC) can be a powerful financial tool for your business. It can help you stabilize your cash flow, and provide working capital to sustain operations during times when your expenses outpace your revenue. But it’s not the right solution for every business, so it’s important to work with an expert consultant like the Mayster Group to be certain you make an informed decision.
A BLOC offers many advantages over a traditional business loan or a business credit card. Unlike a loan, a BLOC lets you access funds as you need them, instead of taking one lump sum up front. And instead of a fixed monthly payment, your BLOC payments are determined by your usage. If you don’t carry a balance, your payments can be zero, and some lenders even allow you to make interest-only payments for added flexibility.
One key benefit is that a BLOC allows you to pay down your balance while keeping your account open, so you always have access to the funds you need when you need them. A BLOC can also offer a higher credit limit than a business credit card, and you can access it via checks to pay vendors who don’t accept credit cards, or even to meet payroll.
However, a BLOC is not intended as a substitute for a business loan, and for certain large capital expenditures, a loan is a more appropriate solution. It’s essential to understand the differences, so you can make the right choice for your business.
To learn more about whether a business line of credit is the right solution for you, contact us today.
Talk to the Mayster Group today to learn what financing solution is right for you. Learn more.