 TITLE: Business Loan or Business Line of Credit: Which Is Best for You? CONTENT: Which Type of Financing Is Best for Your Business?\n--------------------------------------------------\nIs a business loan the right choice for your business, or would a business line of credit work better? The answer depends on several factors.\n*   **How much money do you need?** Lines of credit typically top out around $250,000, so if you need more than that, a business loan is a better option.\n*   **What will you use the money for?** If you have a specific purpose in mind, a loan designed for that purpose could be your best bet. If you'd like access to money with no restrictions on its use, you'll want to go for a business line of credit.\n*   **Do you want flexibility or predictability?** If you crave predictability, a business loan with set monthly payments and a fixed interest rate can make it easier to budget for your business. If you want flexibility, a business line of credit that lets you adjust your monthly payment could be the answer. But keep in mind that lines of credit are more likely to have variable interest rates, and if you miss a payment, your interest rate could rise.\n*   **How good are your business and personal credit scores?** Your creditworthiness will affect the amount of money you can borrow and the terms for which you'll qualify. Lower credit scores may make it harder to borrow larger amounts.\n*   **Do you need to build your business credit score?** Getting a business line of credit, using it and paying it down can help a new business build a business credit score—and that can help as your financing needs grow with your business. Just make sure that the lender reports to the three major business credit bureaus: Dun & Bradstreet, Experian and Equifax.\nIf you're not sure if a business loan or line of credit is the best choice, there are other options for financing your business. In the end, carefully considering your financial needs, business track record and long-term goals will help you determine what type of business financing is best for you. END