A line of credit gives you capital to draw upon to meet a variety of business needs. Draw on your line of credit to get more working capital, buy inventory, handle seasonal cash flows, pay off other debts, or address almost any other business need. The primary purpose of a line of credit is to help finance ongoing operating expenses and provide a cash cushion when you need it. That’s why the best time to apply for a line of credit is actually before you need it. Traditionally a line of credit is best for short-term financing needs, such as payroll, seasonal expenses or temporary cash flow shortages. However, don’t tie up your line of credit paying for long-term financing needs. This means you wouldn’t have access to it in an emergency—which is one of the biggest benefits of a line of credit. If you’re a business owner in need of open-ended access to credit for ongoing needs then a business line of credit might be the solution for you.