Date Added: May 2010
Working capital line of credit is nothing but loans which you may take from a bank to finance your business. It is different from a business loan, in a business loan you borrow a fixed amount of money and repay it in monthly installments which is pre-decided. This is the way to go if you are looking for a fixed amount all at once. On the other hand in a line of credit you don't have to pay a fixed amount each month. You have the flexible payback option wherein you can opt to pay the interest only and leave the principle amount to be paid back when you gain a handsome profit out of your business.