Using a line of credit the smart way
A line of credit is a tool. Used right, it smooths cash flow. Used wrong, it becomes a slow-burn problem.
Use it for timing, not for losses
Funding a job between deposit and final payment, or covering a seasonal lull: those are timing uses. Covering ongoing operating losses is a different problem.
Pay it back fast, every time
Treat the line like a 60-day window, not a long-term loan. The shops that keep drawing without repaying end up with a permanent balance and a problem.
Match draws to receivables
Drawing to cover specific receivables that are on their way is healthy. Drawing in hope of future revenue is not.
Take your version of this question further
This is one operator-tested angle on the question. Your shop, your size, your trade, and your team change the answer. Ask your specific version inside Ask a Shop Owner to get a response grounded in how owners like you actually handled it.