Since so much of Velocity Banking centers around the Line of Credit and Cash Flow, I thought we could talk about the 3 different types of lines of credit there are. As a refresher, a line of credit is an arrangement between a financial institution—usually a bank—and a customer that establishes the maximum loan amount the customer can borrow. Read more about lines of credit here or click on the video below to be linked to my YouTube Playlist all about lines of credit.

Types of Credit Lines

There are 3 types of credit lines – home equity, personal, and business. Business lines of credit work similarly to credit cards. The LOC comes with a credit limit, and borrowers make payments every month with interest based off of the amount they borrowed during that period. Your financial institution will most likely have more strict requirements for lines of credit than for business loans. If you think taking out a business line of credit is right for you to be sure to bring...