The choice between a line of credit and a business loan depends on your specific needs. A line of credit is flexible - you only borrow what you need and pay interest only on the amount borrowed. It's beneficial for managing ongoing operational expenses or unforeseen costs. A business loan, on the other hand, provides a lump sum amount and is useful for funding larger one-time expenses, like purchasing equipment or expanding operations. Consider your business needs, repayment capacity, and the cost of borrowing to make the right choice.