Sponsored By City National Bank

No matter how flawless your business model may seem, there is always going to be some risk involved. Consistent cash flow is essential to your business operations. When times get momentarily tight and you restrict that flow, you are depriving your business of the vital elements it needs to survive. That’s why you should have a credit line to keep your business properly nourished.

Interestingly, not needing a line of credit is actually the biggest reason to have it. It is not something you want to use on a daily basis in order to keep your business afloat. A line of credit is a friend walking beside you who grabs your hand and gives you support when you stumble. It’s preventative care for your business. Following is a quick look at what a line of credit is and how it can help you.


The Purpose Of A Line Of Credit

If your endeavor needs a steady stream of funding on a regular basis, you’re not running a business, you merely have a hobby. The purpose of a line of credit is to eradicate those glitches that cause temporary financial distress for your business. A line of credit is not training wheels, it’s a safety net — you don’t need it to succeed, but you sure are grateful it is there in the event of a mishap.


The Benefits Of A Line Of Credit

Quick Access: Since you do the work before you actually need the funds, a line of credit is a financial resource that is there the instant you need it.

Use Only What You Need: This is not a loan. If you have a $50,000 line of credit and you only need $5,000, that’s all you use. You would not be paying interest on the other $45,000 like you would if you had taken out a loan.

Flexible: With several options available, you can handpick the individual elements to craft the perfect line of credit for your business.

Renewable: As soon as you pay any amount back, it becomes immediately available once again.


The foregoing information is provided by City National Bank (CNB). Unless otherwise stated, opinions expressed are those of the respective authors and not necessarily those of CNB. The information is provided without warranty and no recommendation or endorsement by CNB is intended or should be inferred unless specifically stated.

Visit City National Bank’s News & Insights for small business tips, trends and updates.

cnb rbc 4 5 17 Give Yourself Some Credit: Opening A Credit Line For Your Small Business



For more tips and inspiration for small business owners,
visit CBS Small Business Pulse Los Angeles.





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