More than 90 percent of small-business owners are worried about experiencing an economic recession over the next 12 months, according to a June 2022 Goldman Sachs survey.
Because lenders tend to tighten their lending standards during recessions, small-business owners may be looking for ways to secure funds before access to credit is possibly reduced.
One option to consider is to apply for a business line of credit—even if you don’t need it right now. Unlike a business loan, a line of credit lets you decide when to withdraw funds and how much to take out, up to a set limit.
Would Your Business Benefit From a Line of Credit?
Since it’s common for access to financing to decrease during a recession, getting a line of credit before you need it can be a smart move, especially if you see the potential for cash flow issues in the future….