{"id":91,"date":"2018-08-16T07:15:32","date_gmt":"2018-08-16T07:15:32","guid":{"rendered":"https:\/\/blogindifi.wordpress.com\/2018\/08\/16\/6-smart-ways-for-small-businesses-to-use-a-line-of-credit-to-their-advantage\/"},"modified":"2021-01-13T06:08:33","modified_gmt":"2021-01-13T06:08:33","slug":"6-ways-small-businesses-use-line-of-credit","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/","title":{"rendered":"6 Smart Ways For Small Businesses To Use A Line Of Credit To Their Advantage"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignleft\"><img decoding=\"async\" src=\"https:\/\/cdn-images-1.medium.com\/max\/800\/1*I3GD0INzWqua2wlPtWQB5Q.jpeg\" alt=\"\"\/><figcaption><em>Line Of Credit For Small Businesses<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Line of Credit is one of the most beneficial tools available to businesses to overcome a shortfall in cash flows. One of the biggest woes that most business owners face is\u200a\u2014\u200alack of liquidity. By availing a line of credit, small businesses can have access to liquid funds and make the most of the opportunities that come their way.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To phrase it simply, a line of credit is a pre-agreed amount of money that you can borrow from your lender in times of need. And, you have the flexibility to repay it when you can. Unlike traditional bank-based business loans, in a line of credit, you pay interest only on the amount you use.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, thanks to several digital lenders like <a href=\"https:\/\/www.indifi.com\/associate\/direct?utm_source=Blog&amp;utm_medium=post&amp;utm_campaign=August\" target=\"_blank\" rel=\"noopener noreferrer\">Indifi<\/a>, small business owners and entrepreneurs are now able to access funds faster and quicker than ever before.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, the lending process today is more convenient and flexible, thereby helping business owners bid goodbye to cash crunches.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <a rel=\"noreferrer noopener\" href=\"https:\/\/www.indifi.com\/blog\/lines-of-credit-online-lenders-vs-traditional-banks\/\" target=\"_blank\">Lines of credit: online lenders vs. traditional banks<\/a><\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\/unsecured-line-of-credit-loans-india\">Line Of Credit Loan India<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Here, in today\u2019s article, let\u2019s dive into some of the best ways to use a line of credit to your advantage.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#1_Expand_your_Workforce_to_Meet_the_Demands_of_your_Growing_Business\" >1. Expand your Workforce to Meet the Demands of your Growing Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#2_Invest_in_your_Staff\" >2. Invest in your Staff<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#3_Up_your_Marketing_Game\" >3. Up your Marketing Game<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#4_Purchase_New_Equipment\" >4. Purchase New Equipment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#5_Create_a_Safety_Net_to_Pay_for_Operational_Expenses\" >5. Create a Safety Net to Pay for Operational Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#6_Expand_your_Inventory\" >6. Expand your Inventory<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/6-ways-small-businesses-use-line-of-credit\/#The_Last_Word_A_Line_Of_Credit_Does_Wonders_To_Help_Your_Business_Grow_And_Expand\" >The Last Word: A Line Of Credit Does Wonders To Help Your Business Grow And Expand<\/a><\/li><\/ul><\/nav><\/div>\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Expand_your_Workforce_to_Meet_the_Demands_of_your_Growing_Business\"><\/span>1. Expand your Workforce to Meet the Demands of your Growing Business<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Cash flow fluctuations are part and parcel of all small businesses. And, when cash flow is low, most business owners put off hiring new staff. According to a report by SmallBizTrends, 90% of small businesses want to hire additional staff, but have put it on hold due to budget constraints.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if you want to grow your business and meet the increased demands, you need to hire. Without the right staff, your customer service, quality control and other aspects of your business take a hit.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Invest_in_your_Staff\"><\/span>2. Invest in your Staff<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">When cash flow is tight, usually one of the first things to get struck off your list is\u200a\u2014\u200aemployee training. This decision may not turn out to be a wise one, as it may affect your overall business performance in the long run.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Having a solid team is one of the most critical elements that add value to your business. When you invest in your employees, it boosts their performance levels, builds loyalty, all of which improve the reputation of your company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a line of credit, you can stay invested into your employee related activities like\u200a\u2014\u200amentoring, training, incentives and perks, and build a robust business.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/line-of-credit-for-new-business\/\">How To Get A Line Of Credit For A New Business? <\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Up_your_Marketing_Game\"><\/span>3. Up your Marketing Game<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t market yourself well, the chances are that your customers will forget about your business and switch over to your competitors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the funds availed from a line of credit you can: invest in a digital marketing to business on social media, write engaging and informative blogs for you and optimize your website to boost search engine rankings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Apart from this your marketing budget can also help you in hosting seminars, expos and other events that help you connect with your audience.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Purchase_New_Equipment\"><\/span>4. Purchase New Equipment<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">For any business to retain its edge over its competitors, you need the latest equipment and technology. But, these purchases are expensive and it\u2019s difficult to pay for them from your day-to-day budgets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a line of credit you can purchase new equipment, upgrade your IT infrastructure, renovate your office or even open a brand new location for your business.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\">Also Read: <a href=\"https:\/\/blog.indifi.com\/business-loan-vs-line-of-credit\/\">Business Loans vs The Line Of Credit<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Create_a_Safety_Net_to_Pay_for_Operational_Expenses\"><\/span>5. Create a Safety Net to Pay for Operational Expenses<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Unexpected expenses like a machine breakdown, late payment from clients can lead to severe cash flow problems. With a line of credit, you can efficiently manage your day-to-day operational expenses, without running here and there to avail term loans at exorbitant interest rates.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Expand_your_Inventory\"><\/span>6. Expand your Inventory<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">As your business prepares for an increase in sales volumes, a line of credit is ideal for boosting your inventory. This is highly valuable for seasonal businesses that have huge variations in sales. Additionally, by investing in your inventory, you can keep up with growing sales demands, without missing on critical sales due to lack of stocks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Last_Word_A_Line_Of_Credit_Does_Wonders_To_Help_Your_Business_Grow_And_Expand\"><\/span>The Last Word: A Line Of Credit Does Wonders To Help Your Business Grow And Expand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The key here is to apply for a line of credit well before your cash flow becomes strained. By availing a line of credit when your business is in a sound financial position, you get better deals on the interest rate. Check out trusted digital lenders like <a rel=\"noopener noreferrer\" href=\"https:\/\/www.indifi.com\/associate\/direct?utm_source=Blog&amp;utm_medium=post&amp;utm_campaign=August\" target=\"_blank\">Indifi<\/a> and use the funds to take your business to the next level.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color wp-block-paragraph\"><a href=\"https:\/\/www.indifi.com\/unsecured-line-of-credit-loans-india\">Apply Unsecured Line Of Credit Loan<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Line of Credit is one of the most beneficial tools available to businesses to overcome a shortfall in cash flows. One of the biggest woes that most business owners face is\u200a\u2014\u200alack of liquidity. By availing a line of credit, small businesses can have access to liquid funds and make the most of the opportunities that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[68,90,91,13,14],"class_list":["post-91","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-credit-line","tag-line-of-credit","tag-merchant-cash-advance","tag-small-business-loans","tag-unsecured-business-loans"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/91","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=91"}],"version-history":[{"count":5,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/91\/revisions"}],"predecessor-version":[{"id":3812,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/91\/revisions\/3812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/621"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=91"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=91"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=91"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}