Running a successful business requires maintaining a steady stream of working capital throughout the month to cover regular and unexpected expenses, and to be able to take advantage of sudden business opportunities. However, this is sometimes easier said than done. If you’re stuck in a slower business period but you don’t want to apply for conventional bank loans, you may be excited to learn that applying for business lines of credit instead can give you similar benefits. Consider these top five benefits business credit lines have to offer.

1. They Can Improve Cash Flow

When you’re short on money, it’s hard to cover your regular expenses. When you have a conventional loan, however, you’re obligated to make minimum monthly repayments whether or not you’ve used the money. With a credit line, however, you can use only however much you need when you need it. This allows you to improve your cash flow and eliminate unnecessary payments.

2. Some Interest Rates May Be Low

Another advantage of credit lines is that for many of them, their interest rates may be lower than typical credit cards. Since interest rates can significantly add up over time, this could mean saving you money in the long run.

3. You’ll Have an Emergency Buffer

When times are tough and you don’t have the luxury of waiting around for months for a loan approval, you can turn to your credit line instead. A credit line can act as a good fallback option or emergency buffer in case you suddenly need to cover an expense and don’t have enough liquid cash on hand. In this way, it can provide a good short-term solution.

4. You Only Borrow What You Need

Unlike conventional loans, which lend you a fixed sum, with a credit line, you only borrow what you actually need as you go along. This prevents overestimates, so you won’t be stuck paying back more than you actually needed to begin with.

5. You Can Cover Smaller Expenses

Finally, while conventional loans may be useful to cover very large expenses, they may not work as well for small sums. If you have small expenses that don’t warrant a bank loan, a credit line can be a strong alternative.

Maintaining working capital and having access to cash when you need it is foundational to any successful business, but sometimes that’s easier said than done, especially when a business has been dragging. If this is the case, you don’t have to apply for conventional bank loans. Business lines of credit offer a solid alternative. Given their benefits, they could be the right choice for your business.