Practice English Speaking&Listening with: Credit & Debt Consolidation : Business Line of Credit

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This is Patrick Munro talking about how a business line of credit works. Basically a

business because of the nature of the business does not have a regular paycheck so therefore

cash flow is very important. Many times the business needs to grow or maintain payroll

during these periods of cash flow shortage. So if a business has maintained a good credit

rating, they can go to a bank who knows the business well and establish a business line

of credit, which is like an existing credit line that they can pay checks from, pay vendors

and suppliers with, and basically maintain an even keel on the business until their receivables

come in the door and they're able to pay down their line of credit and of course recharge

it so that it can be available for the next time where there is a shortage in cash flow.

A responsible business will always find the best line of credit from the best bank available

and the lowest interest rate that they can possibly pay because after all, when you're

paying interest on a business line of credit, that is an expense and businesses, successful

ones, want to keep expenses down. This is Patrick Munro talking about business lines

of credit.

The Description of Credit & Debt Consolidation : Business Line of Credit