For businesses on the verge of growth, a Line of Credit can provide working capital to help meet short-term needs like payroll, inventory purchases, equipment repairs and more. As these types of loans continue to grow in popularity, we’ve identified several great advantages.

1. Improves Cash Flow

A Small Business Line of Credit provides access to credit that can be used to expand a business, purchase inventory, cover unexpected expenses or off-season slumps. In addition, it may cover the costs associated with purchasing new equipment.

2. Accommodates Seasonality

For many businesses, a Small Business Line of Credit is a great tool for balancing cash flow. For organizations impacted by seasonality, the additional funds may be used to pay for temporary workers or even prepare for the holidays, thus allowing them to meet the needs of the market.

3. Builds Credit

A Line of Credit can help build a business’s credit history while boosting its credit score. This can be beneficial in obtaining longer-term loans and bigger lines of credit in the future.

4. Provides Expansion Opportunities

The costs associated with growing a company can be extensive, and likely require additional funding. A Small Business Line of Credit and can provide working capital to purchase a larger building, additional warehouse space or even extra locations.

Bank of Southern California offers Small Business Lines of Credit decisioned in 24 hours or less. To learn more, visit one of our eleven branches or complete the financing request form.