How does the line of credit work?

Line of credit is the direct connection between you, the bank, and your partners. 🙂

Practically, the bank offers you a loan with a term of up to 24 months and thus helps you overcome the temporary shortages of your working capital.

That is, when you are not doing well with money and are pressured to pay your suppliers, employees, and/or taxes to the state budget, the line of credit solves your cash-flow problems, giving you the possibility to make your payments on time. 😇

Major advantage the advantage of using the line of credit is that you only pay for the money used at the end of each day and not for the entire value of the line of credit.

Thus results a monthly interest that depends on the amounts used, less costly than in the case of a classic loan (in which you use the entire approved amount and repay it at the deadlines agreed with the bank). 📉