If you’re considering a financing solution to your low working capital or as a safety net for future slow seasons, consider choosing a revolving line of credit. There are many benefits to choosing revolving lines of credit over traditional bank loans or other financing options, so determine for yourself whether your business needs this versatile financing option.

A revolving line of credit offers you an open-ended financing option. Once you’re approved for a line of credit, you have access to a loan up to the maximum amount. However, unlike a traditional loan, you don’t have to determine immediately how much you need to take out. Once you take out a portion of your potential loan amount, you’ll begin accruing interest.

Non-revolving credit doesn’t allow you to take out any more financing until you’ve paid it off in full. A major benefit of choosing revolving credit lines is that you can take out another portion of financing as you need it. Think of it like a business credit card, only with better terms. You don’t have to pay off your initial loan before taking out a second or third, as long as you don’t reach your maximum credit limit and you continue to make minimum payments.

Take advantage of the extreme flexibility of a revolving line of credit. Don’t worry about planning for down periods or saving back working capital for your next big client. A line of credit is always there when you need it and doesn’t require extensive application processing every time you want to borrow additional cash.

Thanks to the secured nature of most revolving lines of credit, you’ll enjoy higher credit limits and lower interest rates than a business credit card. These generous features are offered because a secured loan is less of a risky investment than an unsecured one. This translates into low-interest rates and excellent flexibility on large amounts of capital.

There are, of course, a few disadvantages to using this form of financing. A line of credit is typically a short-term loan, so you may not receive the same length of payment plans that you would with a conventional bank loan.

Take a look at your current finances and determine whether you could use revolving lines of credit today. With reasonable rates and some of the most flexible financing available to you, a line of credit may be the exact financial tool you need to grow your small business and respond to sudden investment opportunities or unforeseen expenses.