business credit line

If you want to open a business and you do not have enough budget to pay full, you can always get a business credit line. In shot, some call it as loan. If you loan, there is always interest when it comes to monthly payments. Like also in credit cards, if I have not enough money, I use credit card to purchase what I want then you can pay it maximum of 12 months depending on your item that you purchase. The difference between a business loan and a business line of credit is one of flexibility. A business loan gives you a set amount of money for a specific purchase, which you pay back according to preset monthly amounts. A business line of credit works more like a credit card: you have a credit limit that you borrow against when you need it, and you make monthly payments that vary according to the current balance of the credit line. A line of credit is any credit source extended to a government, business or individual by a bank or other financial institution. It is effectively a source of funds that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn. Lines of credit are often extended by banks, financial institutions and other licensed consumer lenders to creditworthy customers to address liquidity problems; such a line of credit is often called a personal line of credit.