Staff Writer

For many companies, the question isn’t whether to apply for small business loans but when. Fortunately, lending institutions offer plenty of choices. And that’s important because even the fiscally healthiest businesses can find themselves in need of money periodically. But which is more suited to your organization’s vision––a line of credit or a working capital loan?

Whether you want to mitigate seasonal growth or scale up operations, find answers here; we’ll explore both options and help you find the best solution for your business.

Both working capital loans and lines of credit have advantages when it comes to helping businesses gain access to cash. However, figuring out when to apply for one over the other can be confusing. This is especially true for customers who’ve never considered business loans before.

The first step to understanding when and how to use each type of financing begins with a basic knowledge of how each type of loan works:

3 Key Questions for Determining Between Working Capital Loans and Lines of Credit Infographic


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