A business line of credit (Abbreviated as LOC) grants you access a specific amount of funds which you can use as needed basis. The main advantage is that you merely pay interest on the funds that you truly withdraw. If you avoid using the line of credit, you don’t need to pay any interest. LOCs are known as “revolving” because as you repay what you borrow, the total amount that you pay becomes accessible to you to work with again (as well as a credit card).
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