Why a Business Line of Credit May Be a Smart Choice for Your Business

May 3, 2021

What could a business line of credit mean to your company? Well, what if you had access to the funds you need when you need them — a type of credit line that’s available to you whenever circumstances warrant it? That’s what a business line of credit can do for you. 

This type of credit line can be super helpful when cash flow is running low or when you’re waiting for accounts receivable to come in but need money at that exact moment. It can even help you during the slow season or stock up in anticipation of the upcoming one. For many business owners, this type of flexibility can be just what they need to provide that extra bit of support when times call for it. And what’s better than that?

Let’s take a closer look at what you need to know to determine if a business line of credit is right for you:

What Is a Business Line of Credit?

A business line of credit is a type of unsecured loan that operates a bit more like a credit card than a one-time lump sum payment. It offers ample flexibility to companies in terms of how to use it. Think of it as a credit card with a large credit limit that you can use and repay over time with a competitive interest rate. You pay interest only on the amount of money you borrow; use as much or as little of it as possible! 

At New Valley Bank, we recognize the need for companies to have flexibility in borrowing funds. What happens to your business in January isn’t the same as in June. When you go through the ups and downs, you need funds with a little bit of wiggle room. We offer a business line of credit to our clients who want more flexibility to borrow to meet their needs. When you work with us, we expect you to raise your expectations — we’ll meet them.

Once your new credit line is established, it’s more affordable to use this funding source to draw money as you need to, putting funds directly into your account to use for any situation that comes up for your business.

When Would I Need a Business Line of Credit?

There are many instances where a business line of credit can be beneficial. Here are a few situations where one can come in handy:

Improving Cash Flow During Slower Seasons 

If you have dips in cash flow from time to time, having a resource that can transfer funds into your payroll accounts or other accounts quickly makes sense. You can even write checks on your business line of credit to cover specific concerns as they happen.

Buying Inventory With Ease

One of the most challenging situations for companies is having cash on hand to purchase inventory, especially if you are coming off the slow season. A business line of credit offers a solution using the credit line and paying back those funds when sales come in. 

Financing Short-Term Expenses

From equipment purchases to important repairs, your credit line creates an opportunity to manage any type of short-term expense you have without putting your business on the line in the process. 

Covering Unexpected Charges With Confidence

Repairs need to be done ASAP. No matter what unexpected event happens, having a way to cover those costs just makes sense. 

One of the core benefits of working with New Valley Bank is that we encourage you to reach out to us now —yes now. Why? So even before you need those funds and there’s a need for emergency access to cash, you have it. When you connect with us, you’re talking to the decision-makers. We’re here, locally, to support your businesses’ efforts. 

Building Business Credit

A business line of credit also works behind the scenes to build up your company’s credit. That means that later when you need to secure a larger loan for expansion or to scale your company, you can do so with a bit more ease. This type of credit line is competitively priced and accessible to companies in a wide range of industries. In short, it’s an essential tool to building the financial stability of your company. Amazing, right?

New Valley Bank Is the Smart Choice

New Valley Bank is constantly seeking ways to support our clients. We do that through a wide range of tools, technology, and customer service. Our team offers the speed of an online lender with the rates of a neighborhood bank. 

So, what are you waiting for? We’re in your community and ready to talk to you about a business line of credit. Connect with our team today to learn more!

Share Blog

Why a Business Line of Credit May Be a Smart Choice for Your Business