10. May 2012 06:14
Having access to a business line of credit provides a lot of freedom for your company. You have the leeway to make decisions without worrying about securing new funding for them, allowing you to move faster than your competitors. You also have a number of opportunities to make changes within your company, temporarily absorbing costs during the shakeup. Here are three ways that you can make good use of the opportunities a business line of credit provides.
Purchase Inventory At A Discount
When an opportunity arises to save your business money in the long term, you can use your credit to make it work in the short term. This can include everything from taking advantage of a short-term promotion to negotiating a longer term deal that allows you substantial savings for purchasing in volume.
As your business changes and adapts throughout the year it is not uncommon to find yourself coming up short for payroll. Your line of credit can help you ensure that everyone in your office gets paid while you wait for things to settle down.
Consolidate And Expand
Reorganization can be a costly process in time, money, and productivity. But in the long term, it almost always yields better rewards. Supplement it with funds from your line of credit and you'll be able to weather the short term chaos in favor of longer term benefits. The same is true with expansion. You might find yourself financially strapped in the short term as your merger takes effect. A credit line will help you meet your expenses while things level out.