As a business owner, you have access to several financing options when you need money for your company. Not all funding opportunities are created equal, however. Your company’s credit history and stability over time can impact the terms you receive or even whether you can obtain a traditional loan, for example. When considering where you want to turn for funds, you should consider lines of credit as viable options, since they offer extensive benefits. The following positives make credit lines a great financing choice for any business.

Affordable

Credit cards and short-term loans are attractive for companies. Credit cards are easy to manage since they can be used for a vast range of purchases; short-term loans provide quick cash for business operations or other expenses. However, interest rates for these two financing vehicles are usually higher than those built into credit lines. In particular, credit cards charge notoriously high interest on cash advances.

Just Right

Lines of credit are also better for purchases that fall between credit card limits and loan minimums. If you need to make a medium-sized purchase and want to reduce expensive closing costs, choose a line of credit. This option is especially useful for practical supplies and inventory if you can pay back that portion of the line before interest rates hurt your bottom line. Then, when the need arises, you can tap into the line of credit again and again.

Flexible

Once you have been approved and secured a line of credit, you can use it for whatever you want. In a traditional business loan application process, in contrast, you are asked to provide an explanation for the loan. You do not even have to use the loan at all until you need it. One caveat is that you may have to pay annual fees, especially if the line of credit includes a credit card access option.

Stress-Relieving

Unexpected emergencies can slow your business down. Holding a line of credit means you have an emergency fund at your disposal with ready access. This access provides peace of mind. When a pipe bursts threatening to flood portions of your office, for example, you can jump on the repairs immediately since you have the means to pay a contractor, even if an initial installment is required to start the job.

A line of credit can be a boost to any business that wants to take control of its cash. Take it to the bank: Securing one as part of an overall, smart financing strategy can help you grow your business and enhance your bottom line.