A line of credit is a useful tool for small businesses to level cash flow during times when cash is needed to support growth. Lines support short-term assets and are generally secured by accounts receivable, inventory and equipment. Small businesses have different cash needs; a contractor uses a line to fund materials needed for specific jobs, a retail shop uses a line to fund inventory purchases, a seasonal business uses a line to operate the business during times when revenue is slack. A properly used line will provide a temporary source of cash until short-term assets are converted into cash. This converted cash, in turn, pays down the line for future use. Lines should not be used to purchase long-term or fixed assets. Not all businesses need lines of credit. For more information about whether a line of credit is right for you please contact our Business Banking team.