The type of product that is ideal for your business truly depends on the need for the capital, the desired repayment terms, and the amount of capital needed, among other business related factors. A loan is ideal for businesses looking for a traditional type of financing, with a higher capital amount, and potentially longer repayment terms. A line of credit is ideal for businesses that have repeated cash flow needs, as well as for those businesses only looking for fast access to capital to pay-off unexpected costs or for an unexpected opportunity. A line of credit will give your business access to an approved amount of funds that can be drawn when needed and you will only be responsible for paying back the amount of money drawn along with any fees or costs. If the business draws less than the approved amount, you don’t have to pay back the entire approved amount, only what was used along with any costs or fees. However, with a loan, the business needs to pay back the entirety of the loan including the associated interest charge or fixed fee.