A line of credit gives your business flexible access to funds you can draw from as needed and only pay interest on what you use. It helps manage cash flow, cover short-term expenses, and take advantage of opportunities without committing to a full loan.

A business loan provides a lump sum of capital with fixed repayment terms, making it ideal for larger investments or long-term growth. It helps fund expansion, equipment, real estate, or major projects while offering predictable payments for easier planning.