2:45 Minutes long
Video Summary: What is a Business Line of Credit. How Should it be Used and What Should it not be Used for.
- A Business Line of Credit is a safety net that can be used for emergencies or opportunities.
- It should be used for short term business issues where it will be paid back in weeks or months.
- Every business owner or nonprofit executive director should have a line of credit in case it is needed.
- It is best to get a Business Line of Credit before you need it.
- Over my 25 year career, the Line of Credit has been extremely helpful and I was always thankful that I had it in place.
- You can get a Business Line of Credit from a bank or an alternative funder like Financing Solutions.
- A Bank will require collateral and it will take a lot of time to get it in place.
- It’s ok to use your line of credit as long as you have a good business.
- A Line of Credit shouldn’t be used if your business is failing.
- Most owners use their line when cash flow is down and payroll is due
- You can’t miss payroll. It is actually illegal and you can get into a lot of trouble by not paying it on time.
Author, Stephen Halasnik is a serial entrepreneur having built 7 successful businesses in 