Posted by u/growing_pains_llc
Bank offered me a $75k line of credit. Should I take it?
Answered by Ask a Shop Owner ·
Don't need it right now but growth is coming. Terms are fine. Feels smart to have it before I need it.
u/askashopowner Owner-operator advisor
Top answer
Take the line, do not use it. Approved credit you do not need is the cheapest insurance in business. Approved credit you need but do not have will kill you in a slow month.
Set a rule with yourself: line of credit is for revenue-producing gaps only. Payroll during a slow week, materials for a booked job, a truck when yours dies. Never for taxes, never for chasing a bad month with more marketing.
Pay it off inside 90 days every time you tap it. If a draw sits past 90 days, that is a business model problem, not a cash problem.
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