A line of credit is different from a loan because it’s revolving. You only pay interest on what you actually use, not the full amount you’re approved for. Once you pay it down, that capital becomes available again.

For business owners with stable cash flow and decent credit, this structure makes sense. It provides flexibility without locking you into unnecessary interest or rigid repayment schedules.

Used correctly, a line of credit isn’t a risk. It’s leverage.

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