Some might say that the auto industry and the business line of credit are a perfect match. Why? Two words: logistics management. The trucking and auto repair industries have one thing in common; they must always be ready with a supply to meet the demand for service. Whether that means supporting a large scale transport and supply chain, or having the parts available on-site to fix an immediate problem, you are looking at both sides of the same coin – preparation and distribution.
How can a business line of credit grease the wheels of industry? By giving trucking companies and specialized service providers the flexibility they need coupled with hassle-free accessibility, you’re doing exactly that. If you’re not sure what that looks like, but you’d like to find out more-read on. This article has the answers you’re looking for.
What’s the Advantage of Credit Without the Card?
You may have heard of unsecured lending options before. A borrower approaches a lender for a short-term loan, qualifies for the funding, agrees to payment terms, and–voilà-secures funding for necessary purposes. The most common kind of unsecured funding is something that the majority of business owners and their employees already have. A credit card.
A credit card does have a few advantages over a short-term loan. One is that users do not have to constantly apply for more funds. Credit card companies set a limit and, as long as you pay off the existing balance, you have unrestricted access to the funds. Another advantage is that as long as you stay in good standing with the credit card company, they increase your limit automatically.
Given the advantages outlined above, you may be wondering why companies in the auto industry would have any interest in a business line of credit. After all, it involves switching from paper, to plastic, not the other way around. How does taking a step backward in financial management help improve transport logistics? Believe it or not, you just answered your own question. It all comes down to details.
A Business Line of Credit: Finances With A Built-in Tracking System
It’s been said that the devil is in the details. This is certainly true of logistics management in transit. You are monitoring, supporting, and adjusting for changes on a daily basis. A business line of credit acts as a constant in a world of variables.
While the credit line does require you to write out physical checks, it also:
- Works the same as a credit card, but has a higher spending limit
- Has a lower interest rate which allows you to put more money back into the company
- You can easily track what’s spent as you spend it so there aren’t “forgotten” charges
- You can limit access to the account more effectively than with a credit card
- You can meet your current demands, whatever they might be
All of these things keep the details of your operation running smoothly so you can focus on what really matters – the sustainable growth of your service-based industry.