Contact Us Locations & Hours Go to SESLOC.org » Search News Member News Community Stories Financial Health Support 7 Ways to Use a Business Revolving Line of Credit Posted November 15, 2021 by Team SESLOC For businesses that find their cash flow isn’t a steady stream month-after-month, a Revolving Line of Credit (RLOC) is a valuable tool. This loan helps smooth cash flow fluctuations due to inventory needs, timing of accounts receivable or seasonality of a business. Similar to a credit card, you pay interest only on the amount drawn, and you pay down the RLOC when the cash flow improves. Here are 7 ways businesses commonly use their RLOC: 1. Peace of Mind Boost your emergency safety net with an RLOC. If your business experiences an emergency, such as a burst water pipe ruining inventory or a broken piece of equipment, quick access to funds can help you stay afloat and recover faster. 2. Off-season Operations For businesses without steady cash flow, such as seasonal tourism, RLOCs are key to covering day-to-day expenses during the slower off-season. Simply draw what you need, and pay it off during peak season. 3. On-time Payments For businesses that collect payments 10-45 days after services are performed, access to funds through an RLOC is a valuable way to bridge the gap in cash flow and ensure that there is no delay in paying vendors, utilities, and other bills. 4. Maintain Payroll RLOC funds can help ensure your employees are always paid on time during periods of low cash flow, or even to support hiring new staff ahead of your peak season or business expansion. 5. Flexibility Quick access to funds allows you to take advantage of business opportunities, such as early payment discounts from vendors, or sales on equipment or inventory. 6. Competitive Edge Access to funds allows you to make moves that give your business a competitive edge — like taking your business online, refreshing your marketing, or investing in training and education programs for your staff. 7. Anything There really is no limit to what you can use your RLOC for — it’s there to support the needs of your business with quick access to cash when you need it, as you need it. Contact SESLOC Business Services at (805) 573-1816 or visit our website to learn more about getting a RLOC for your business. Or, inquire online today » Share filed under: Business Online Banking, Support Tags: Business Services ⟵ Previous Post Next Post ⟶ Related Posts 7 Tips for Banking on the Go 10 Tips to Help Businesses Stay Safe Online Tips for Managing Mail Delivery New! Live Chat Start Chat Contact Us Monday - Friday, 8 am - 6 pm: 805.543.1816 24-Hour Phone Teller service: 805.543.5624 or 888.473.7562 Email: info@sesloc.org Quick Links Contact Us Locations Forms Privacy Policy ATM Locator Find a surcharge-free ATM Advanced Search » Get the ATM Locator Mobile App for Apple » or Android » Equal Housing LenderNCUA Savings are insured to at least $250,000 and backed by the full faith and credit of the U.S. Government. National Credit Union Administration, a U.S. government agency. For mortgage payment assistance, click here. © Copyright 2021 SESLOC Federal Credit Union If you're using a screen reader or other auxiliary aid and are having difficulty with this site, please call 1.844.773.7562.