When should I get a Line of Credit (LOC)?

A line of credit can be incredibly helpful to cover a temporary cash gap tied to seasonality, for example.


If there's a short-term cash gap that needs to be filled, consider applying for a line of credit from a local bank. The benefit is that you will only be charged interest on what is used, and the facility stays in place in a revolving fashion (you can draw down and repay over and over). 

For a more in-depth explanation, read this article