As a manufacturer, you need access to capital to keep your business running smoothly. But should you get a term loan or line of credit? Understanding the key differences will help you determine the best financing option.

What is a Business Line of Credit?

A line of credit provides revolving access to capital up to a set limit. You only pay interest on the amount drawn. The balance fluctuates based on your needs.

Benefits for Manufacturers

• Flexibility - Draw funds as needed instead of getting a lump sum
• Lower risk - Pay interest only on what you use
• Ongoing access - Reuse the line as you pay down the balance
• Fast funding - Can be approved more quickly than loans

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