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Ask any small business owner what their biggest sources of frustration is and you’re likely to hear the words “cash flow.” If you don’t have the working capital you need, unplanned expenses and simply purchasing inventory can leave you constantly playing catch-up.

Improve Your Business Cash Flow with A Revolving Credit Line

A revolving line of credit is one possible solution to this common dilemma. Revolving credit differs from a lump sum loan in that you access the line of credit as needed for any amount up to your limit. You can also obtain a cash advance with a revolving credit line. While you don’t want to get into the habit of borrowing right up to the limit or paying only the minimum amount due each month, this can be an ideal way to avoid business interruption due to a lack of available funds. You’re free to use the credit or cash advance in any way that you see fit.

Benefits to Consider

Not separating your business and personal credit accounts can be a real headache when the time comes to file your taxes. It’s easy to see which expenses are for your business when you maintain a separate credit line because everything goes on a single account. Keeping the business and personal credit separate is also essential when it comes to business reporting. If you carry a high amount of business debt or have had late payments in the past, you don’t have to worry about that affecting your personal credit report when you open a business credit line. Other important benefits include:

Your credit issuer reports your payment history to business reporting agencies such as Dun & Bradstreet, Equifax Commercial, and Experian Business. This lends credibility to your small business if you apply for loans or other types of business financing in the future. If you handle your business line of credit wisely, it won’t be long before banks will come to you offering access to even more working capital.

Your business financing needs are likely much larger than the amount of credit you require for personal needs. Companies that offer lines of credit for businesses understand this and set credit limits accordingly. This means you have the capital you need to make large purchases and deal with emergency expenditures without dipping into personal savings.

Flexibility is another important benefit of business lines of credit. Unlike bank loans that you must apply for each time you need cash, you can access your credit line as often as you like. Without a fixed monthly payment, you can budget your business funds to meet several other goals at the same time.


You need all the help you can get to run a small business successfully.  Doerhoff & Associates strives to provide what you really wants and need, a unique and customized set of services to fill the gap and support you, the business owner.