What is a business Line of Credit?

Unlike traditional loans, a Line of Credit (LOC) loan is a finance facility that allows businesses to withdraw funds up to a set limit on an ongoing basis. This enables them to borrow what they need, when they need it most, with interest only charged on the amount borrowed.

Ways a Line of Credit can help support your EOFY needs:

Manage supplier invoices

Paying outstanding supplier invoices on time is crucial to maintain long-lasting, positive relationships—in some cases suppliers will offer incentives for early payments. With a LoC, you can take advantage of these discounts, without having to wait around for your own cash flow to catch up.  

Keep payroll running smoothly

Covering staff wages as scheduled is a top priority for business owners because meeting employee expectations directly influences job satisfaction, retention, and overall productivity. With access to a LOC you'll never have to worry about covering payroll on time again.

Take advantage of EOFY discounts

Clearance sales and discounts are plentiful during the EOFY period. Having a LOC can give your business the purchasing power to stock up on inventory at a lower rate now, setting yourself up for a profitable year ahead.  

Invest in upgrades and growth plans  

Been waiting to make the upgrades your business desperately needs? Whether it’s purchasing new equipment and vehicles to boost productivity, or adopting new technologies to streamline your processes, your business deserves to enter the new year with a refresh. A LOC can help make all of that happen, while also supporting continuous growth plans—from launching a new marketing campaign to developing new products/services to bring to the market.

Dealing with seasonality and unforeseen challenges

Businesses in industries like construction, hospitality, and retail experience revenue fluctuations around the EOFY. During seasonal slumps when cash flow is taking a hit, a LOC becomes a necessary tool to cover operational expenses including wages, supplies and rent. Having an established LOC also acts as a safeguard for cash flow in the event your business is faced with an unexpected trading disruption.

The same applies for periods of strong cash flow—when borrowing requirements are low and a large lump-sum loan may have created an unnecessarily high repayment structure. The key benefit being that interest is only paid on the specific amount borrowed.

Take control of this EOFY with a Bizcap Line of Credit

A Line of Credit helps to cover your EOFY costs, while also serving as a long-term bridging finance solution—giving you access to funds exactly when you need them. NZ businesses can now access up to $300k with a Bizcap flexible Line of Credit.

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