What is a revolving credit line and how is it used?
It’s a flexible, easy way to get immediate cash for your business needs. You can use a revolving line of credit to cover temporary cash-flow needs, finance receivables, purchase inventory, or take advantage of seasonal opportunities. Revolving lines of credit have variable rates, and the loan amounts typically range from $10,000 to $250,000. To draw on your revolving credit line, you simply write a check in any amount, up to your available credit limit and deposit it into your regular business checking account. You repay the amount borrowed through monthly payments that can usually be deducted directly from your business checking account.
