It’s common for business owners to confuse lines of credit with business credit cards, but the two types of financing are actually quite different. A business line of credit generally offers a larger cap and lower interest rates, making it more flexible than using a credit card for purchases. How can you put your line of credit to the best use for your company’s needs? Here are several options you may not have considered before.

Seasonal Needs

Many businesses — especially small businesses — operate on a seasonal schedule. For example, lawn care companies tend to stay busier during spring, summer and fall while winter means slowed operations. Something similar happens with many construction businesses and service businesses. With business lines of credit, these seasonal variations in profit don’t have to negatively affect your cash flow. You can still cover operating costs, payroll and tax payments whether you have regular income or not. Come spring, your business can take on the largest projects without skipping a beat.

Front-Loaded Business Projects

Some companies need a sizable amount of capital to begin each project, making their initial investment back with excellent profits after the project is complete. Software companies often operate this way, in addition to numerous manufacturing companies. Thanks to the strong infusion of working capital available with a business line of credit, you always have the funds needed to take the first step.

Business Equipment and Marketing Costs

Having a line of credit isn’t just about covering debts. It’s also about taking advantage of smart opportunities to grow your business. If you see a great deal on equipment for your company, you can handle the down payment or leasing costs with your business credit. In a way, a line of credit ensures you always have the cash flow needed to buy what you need, when you need it. If you want to attract online customers, investing funds in digital marketing and web development is a must. After you start seeing increased profits from a larger customer base, you’ll be happy you took advantage of business credit to make it happen.

Emergency Financing

Even the smartest entrepreneurs can’t predict the future. With lines of credit, you don’t have to. You can prepare your best for the unexpected, but if a natural disaster or market upset causes problems with your bottom line, your company is protected against closing. You always have enough capital to keep the lights on.