a. In order to determine whether or not your business should apply for a line of credit or a credit card, depends on how much working capital you are looking for, whether or not you prefer a set term and payments or if you’re looking to get some perks. A business credit card usually has a set credit limit, which can be used at any time, and some cards come with certain perks (cash back), monthly payments and a set interest rate. A business line of credit can potentially have a higher line of credit amount (depending on what the business is approved for), has daily or weekly or sometimes monthly payments and has set terms (which may reset on every draw). A business line of credit might be better if you’re looking for a higher approved amount, set repayment terms and daily or weekly payments, whereas a business credit card could be useful if you’d rather get additional perks.
b. A line of credit is a great option for businesses that have repeat cash flow needs or want to have capital ready for any type of business opportunity. This type of product allows a business owner flexibility and access to working capital which is ideal for those unexpected financial hardships or incredible opportunities.