Industries have seasons, and some of those seasons can be a little drier than others. During dry seasons, it’s good for a business to have additional resources to keep operations churning along smoothly. One option many businesses tap into is lines of credit. 

Lines of Credit Explained

Much like a credit card, a business line of credit is a large set sum of funds available to the business should they need it. Also, like a credit card, the business does not pay interest until any funds are withdrawn. The amount accessible could be anywhere from several thousand dollars to several hundred thousand dollars. 

How To Use the Credit

A business line of credit can be used when capital resources are low. A business might need help during the seasonal slow periods for expenses such as payroll, rent, and monthly expenses, or during emergencies, such as purchasing new equipment when old equipment is no longer functional. There really is no hard set of rules on how the funds can be used. 

You don’t need to use your entire line of credit at once. You can withdraw however much you need at a time until the entire limit is met. If you have a line of credit that’s $50,000 and you withdraw $20,000, you’ll still have $30,000 available until you need it, or until you pay back the $20,000 and are back to the full amount. 

Associated Fees

Businesses might prefer using a line of credit over credit cards due to lines of credit generally having lower interest rates. Lines of credit also offer better flexibility regarding when they need to be paid back. While you won’t need to make monthly payments when you draw from a line of credit, the interest will continue to accrue. 


The lender will consider how long you’ve been in business as well as the strength of your credit when you apply for a line of credit. They’ll also want to see recent bank statements, profit and loss statements, business and personal tax returns, and identification. Generally, the application process with online lenders is faster than with traditional banks. 

There’s no need to struggle when business is slow and you shouldn’t have to worry about how you’re going to cover expenses when equipment breaks down. Your business could benefit from a line of credit to help get over hurdles that seem to be seasonal to so many industries.