Reasons For Setting Up A Line Of Credit
It appears you don't have a line-of-credit set up for your business. Consider setting one up NOW.
Reasons:
- It's best to have reserve funds available, BEFORE emergency funds are needed, for such purposes as major customer loss, equipment breakdown, etc.
- It's a good way to establish flexible credit and improve a banking relationship.
- This is a better source of borrowing than some other sources, such as credit cards.
Note: A line-of-credit is credit available when you need it. The balance of money you actually borrow can remain at zero or you can borrow and repay the line and the line remains open. When setting up your line-of-credit, get as large of a line of credit as possible.
