Respond to changing cash flow needs with a working capital line of credit. Using a traditional unsecured (no-collateral) working capital line of credit is a great way to bridge the gap between the important tasks you need to accomplish and the cash you need to get them done.

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While it’s ideal to have money in the bank to help weather storms, the next best thing is having access to a low interest unsecured line of credit that you can draw on when you need it. A traditional unsecured business line of credit is typically used as short-term working capital to manage expenses such payroll, purchasing inventory, or offsetting seasonal lapses in cash flow.

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Essentially, a line of credit can help small businesses thrive and grow, and one of the major advantages over a regular business loan is that you only make payments and pay interest on what you actually use.

Upon approval, the bank typically issues a book of checks and attach the line of credit to a business checking account. You can draw on the money as needed for working capital, financing receivables, or a variety of other business needs as they arise.

A traditional unsecured working capital credit line is one of the most sought-after type of business financing, but they are also the most difficult to obtain.