Skip to main content

Original text


Powered by Google TranslateTranslate
Powered by Google TranslateTranslate
Is A Line Of Credit Right For Your Business Recession Plan?

Published September 15, 2022

More than 90% of small-business owners are worried about experiencing an economic recession over the next 12 months, according to a June 2022 Goldman Sachs survey.

Because lenders tend to tighten their lending standards during recessions, small-business owners may be looking for ways to secure funds before access to credit is possibly reduced.

One option to consider is to apply for a business line of credit — even if you don’t need it right now. Unlike a business loan, a line of credit lets you decide when to withdraw funds and how much to take out, up to a set limit.

WOULD YOUR BUSINESS BENEFIT FROM A LINE OF CREDIT?

Since it’s common for access to financing to decrease during a recession, getting a line of credit before you need it can be a smart move, especially if you see the potential for cash flow issues in the future.

For example, if you plan to make large investments in inventory and materials or take on projects that require substantial outlays of cash before you receive payment from your customers, a line of credit can help ensure you have funds available in the future to do it.

Read more in the Associated Press: 

SHARE THIS HEADLINE

Source

Associated Press

CONNECT
712 H St NE PMB 98848
}
Washington, DC 20002
1-800-634-0245

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

Chat generously provided by:LiveChat

In partnership with
Jump back to top