Line of credit

A line of credit is a pre-agreed amount of money that you can access when you need it. Many lines of credit are revolving, meaning that with each weekly repayment, the amount you repaid (minus the fees) becomes available again. Interest is only paid on the amount of credit used. It can provide a valuable safety net during an unexpected event, or it can give you the means to take advantage of a surprise growth opportunity.

A business credit card is a flexible form of payment similar to a line of credit, however, not all purchases or expenses will accept payment through a business credit card. This may include your property lease, payroll, and invoices from some vendors. Unlike a business credit card, you can typically use a business line of credit for these expenses.