A line of credit is a flexible loan arrangement between a business and a financial institution. Unlike a traditional loan, a line of credit allows a business to access funds up to a specified credit limit as needed, without having to reapply for a new loan each time. Interest is only charged on the funds actually used.

The interest is a 100% tax-deductible expense to you as well (both biz and RE).

Lines of credit can be either secured or unsecured. Secured lines of credit require collateral, such as business assets, while unsecured lines of credit do not.

Where to source - start with local banks and regional banks.  Larger banks will be more hesitant for small business owners. 

However, unsecured lines of credit usually come with higher interest rates due to the increased risk for the lender.  

Google for “no doc” lines of credit which may help NEW business owners quickly receive funding for their new business.

0% APR (Annual Percentage Rate) business credit cards offer a promotional interest rate of 0% on purchases for a specified period, typically ranging from 6 to 18 months. 

During the promotional period, no interest will be charged on the outstanding balance. This can be an attractive option for businesses looking to finance short-term expenses or manage cash flow without incurring additional interest costs.

It is important to note that after the promotional period ends, the interest rate will revert to the standard APR, which can be significantly higher. 

However - some unique BALANCE TRANSFER strategies exist where you can transfer part of all of the balance to a new card.  This is not a long-term strategy but can help greatly during the startup phase.

Best Large Bank = Chase

Best Small/Regional = Key Bank, Truist

Debt can be classified as either "good debt" or "bad debt" based on its potential to help or hinder your financial goals.

Good Debt: Business debt, such as lines of credit and 0% APY business credit cards, is often considered good debt. Why?  It leads to future cash flow and wealth building. 

These financial tools can be used to invest in the growth of your business, such as purchasing inventory, upgrading equipment, or expanding operations or headcount.

When used strategically, this type of debt can lead to increased revenues and ultimately, greater profitability.  

Bad Debt: Consumer debt, such as personal credit cards and car loans, is typically considered bad debt. This type of debt is used to finance personal consumption and does not contribute to wealth creation or long-term financial stability. 

Carrying a high amount of consumer debt can strain your personal finances and reduce your capacity to invest in your business.

High personal debt also will hinder your ability to receive higher business credit limits as the banks DO look at the guarantors credit in most cases.