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Line of Credit

What is Revolving Credit? – Account Terms, Limits & Examples

Revolving Credit: What You Need to Know as a Small Business 

When it comes to borrowing for your business, understanding the types of credit available to you is key to knowing which type to use in different financial situations. The two main types of credit are revolving credit and installment credit. 

If you’re seeking a financial cushion for emergencies, or foresee a situation where your business will need to borrow money repeatedly in the near future, a revolving account from your bank may be what you need. 

In this article, we go through how a revolving line of credit works and whether it is the right choice for your business. 

Categories
Line of Credit

Business Line of Credit Rates: Interest Fee Analysis

Business Line of Credit Rates Explained

As start-ups and small businesses work to find their rhythm, the struggle to manage cash flow, fund day-to-day operations, and take advantage of new opportunities are common. Sometimes, this may necessitate taking out a loan to supplement cash reserves.

A secured business line of credit is an ideal lending resource that allows businesses to draw this capital when they need it. However, small business line of credit interest rates are something to watch out for, with the average interest rate on a line of credit ranging from 5% to over 20%. Here are some things you should consider if you are looking to keep your line of credit fees low.