A business line of credit can be a powerful growth engine, offering flexible access to capital that helps you manage short-term expenses, smooth out seasonal fluctuations, and seize new opportunities—but without discipline, it can just as easily burn through profits. The key is understanding exactly how your credit line works, from interest charges to repayment terms, and using it intentionally rather than impulsively. Treat it as a strategic tool by defining clear rules for when and why you’ll draw from it, matching withdrawals to incoming revenue so you can repay quickly and reduce interest. Keeping balances low and repaying early strengthens both your margins and your credit profile. Monitor every transaction in real time through your bookkeeping system so nothing slips by unnoticed, and stay ahead of renewal periods since lenders review limits, rates, and conditions annually. Mismanaging the account or being caught off guard could compromise access when you need funding most. Finally, remember that a line of credit is just one tool in your financial toolbox; exploring alternatives, such as term loans, asset-based financing, or revenue-based funding, can help relieve pressure on your credit line and create a healthier, more stable borrowing strategy.
source: https://www.superiorbusinesslending.com/7-tips-to-keep-your-business-line-of-credit-under-control/
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