Is a line of credit right for your business recession plan?
The possibility of a recession in the near future and the likely reduction in credit availability that is often associated with it may drive some small-business owners to explore financing options like a line of credit
By LISA ANTHONY of NerdWallet
Published - Sep 15, 2022, 07:03 AM ET
Last Updated - Jun 24, 2023, 10:14 AM EDT
More than 90% of small-business owners are worried about experiencing an economic recession over the next 12 months, according to a June 2022 Goldman Sachs survey.
Because lenders tend to tighten their lending standards during recessions, small-business owners may be looking for ways to secure funds before access to credit is possibly reduced.
One option to consider is to apply for a business line of credit — even if you don’t need it right now. Unlike a business loan, a line of credit lets you decide when to withdraw funds and how much to take out, up to a set limit.
WOULD YOUR BUSINESS BENEFIT FROM A LINE OF CREDIT?
