What is the difference between a business line of credit and a term loan?
Small business credit lines that are revolving don’t usually have a term. You can withdraw the funds and repay them indefinitely as long as you prove to your lender that you are responsible borrower. A business line of credit offers many benefits, including the time and energy savings.
While most business credit lines are traditional revolving credit products like business credit, they won’t automatically renew if you have fully paid off what you owe. You may need to reapply for your credit line if you are not revolving lender. Reapplying to your lender should not be difficult if you are in good standing.
There are two types of business credit: short-term and medium-term. These differences can be found in the minimum qualifications, maximum funds, and interest rates.
