Difference between a Line of Credit and a Small Business Loan
A line of credit and small business loans have some major similarities as they both offer businesses good opportunity to leverage the assets in return for liquid capital. That amount can be spent on the variety of suitable operational needs. There are some really important differences between lines of credit and small business loans. Let us take a look at these two useful tools and highlight the main differences. Line of Credit - Loans are common entities in people's personal lives and business, but credit lines are used more widely. There are different types of credit lines such as unsecured and secured line of credit, no doc line of credit etc. If you have ever used a credit card in your name or your company's name, you have used a credit line. It is significantly different from loans because of the revolving nature which means credit can be easily replenished up to certain credit limit through regular payments from the company. - As long as you