Respond to changing cash flow needs with a working capital line of credit. Using a traditional unsecured (no-collateral) working capital line of credit is a great way to bridge the gap between the important tasks you need to accomplish and the cash you need to get them done.
While it’s ideal to have money in the bank to help weather storms, the next best thing is having access to a low interest unsecured line of credit that you can draw on when you need it. A traditional unsecured business line of credit is typically used as short-term working capital to manage expenses such payroll, purchasing inventory, or offsetting seasonal lapses in cash flow.
Essentially, a line of credit can help small businesses thrive and grow, and one of the major advantages over a regular business loan is that you only make payments and pay interest on what you actually use.