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 or covering unexpected expenses. Interest is only paid on the amount borrowed, not the total credit limit. These credit lines can be secured or unsecured, depending on whether collateral is required. They are often offered by banks and financial institutions, providing businesses with quick access to funds without the lengthy application process associated with standard loans.