Make The Most of Your Line of Credit

Posted: by Derran Frampton

Being able to access a line of credit will offer your business flexibility, control and value. Businesses usually access a line of credit for business expansion, capital investment or to assist with management of cash flow. A line of credit gives you access to funds when you need them on an ongoing basis, without having to renegotiate terms with your lender.


A line of credit is a flexible drawdown facility that is convenient for capital purchases, business investment or for managing your cash flow and working capital. Interest is only charged on the funds you have accessed and there is no obligation to pay down any of the principal until the credit limit is reached or you choose to pay off the facility.


A line of credit gives you the control over your cash flow, whether it’s to pay your accounts earlier to attract supplier discounts or to purchase extra seasonal stock. You decide how much and when.

Growth & Investment

By having pre-approved access to additional funds, purchases and investments that will contribute to the growth of your business can be made quickly without the need to apply for funds or wait for a decision from your financial institution.

If you have been thinking about applying for a line of credit for your business, it is a great idea to get some advice and make a careful assessment of what credit limit you need to access. It could actually simplify the way your business accounts are set up, saving you time and money.

Take this example; a local manufacturer received a large order outside of their normal business trading level which required a substantial amount of material, well above their normal requirements. They had just paid their end of month accounts so available cash was a bit low. Fortunately they had recently spoken to the Credit Union and had a Line of Credit facility approved. The client simply ordered the material using the funds available in the Line of Credit knowing that when they were paid, they could then repay the debt.

Not only did having access to the Line of Credit facility make dealing with such a large order easy, it also saved time and worry as the client no longer needed to transfer funds back and forth between their other business accounts.

Southern Cross Credit Union has been looking after the financial needs of the Northern Rivers community for more than 50 years. Call 0476 813 595 to find out more about business banking.

Any advice given is of a general nature only and is not based on any consideration of your objectives, financial situation and needs.

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