A Business Line of Credit is a flexible financing option that allows businesses to borrow money up to a certain limit. Unlike a traditional loan, where you receive a lump sum, a line of credit lets you withdraw funds as needed, making it ideal for managing cash flow, covering unexpected expenses, or funding short-term projects. Interest is only paid on the amount borrowed, not the total credit limit. This financial tool is often offered by banks and credit unions, and it can be secured or unsecured. A secured line of credit requires collateral, such as inventory or equipment, while an unsecured line does not. Businesses can use this resource to maintain liquidity and support growth without taking on long-term debt.