- This topic is empty.
-
Posts
-
-
A couple months ago, we had a client delay payment for nearly 45 days — completely threw off our budget. Payroll was due, some vendor invoices piled up, and I ended up dipping into personal savings just to stay afloat. I remember someone here said they used a line of credit to bridge gaps like that without going into panic mode. I never really looked into how they work, though. Are they really that flexible? And how do they even differ from just using a regular business loan?
-
I was skeptical too until I got one set up last year. What helped me understand it was this page that broke down what does loc stand for in business and how it actually works. It’s not like a term loan — you only borrow what you need, when you need it, and the interest only applies to that amount. I used it for short-term gaps like your situation, and it saved me more than once. Think of it as a financial cushion with way more control.
-
In my view, having a line of credit is like knowing there’s a lifeline just in case — without the stress of always using it. I’ve seen businesses crumble just because of a short delay in payments or unexpected costs. If you can qualify for one and use it wisely, it can be a serious game changer. It’s not about borrowing all the time, it’s about knowing you can when you need to — that makes a huge difference.
-
It’s totally normal to use credit on purpose when it’s the only way for you to handle financial pressure in your business right now. And as soon as things get better, the first thing you do is pay off the credit and all that. We had those kinds of problems before, when some clients delayed payments till the very last moment, and then we had to wait even longer for the bank transfers. Now there are totally different online payment options https://www.streameast.org.uk/the-future-of-online-payments-whats-next/ , and sometimes we get paid by clients instantly, no delays, and we can immediately split the money across business needs like payroll, marketing, suppliers, and so on .
-
