My Business Credit Lines

Why Small Business Loans are More Beneficial than Credit Card Debt

Business credit cards are useful for covering small, daily expenses, but attempting to cover business operations with credit cards can turn into a nightmare cycle of debt payments. Nearly 65-percent of all small businesses rely on credit cards for most of their purchases.


Businesses should consider taking out working capital loans instead of credit cards. A credit card limits businesses to a mere handful of choices. Loans, however, are available through banks, alternative lenders, the Small Business Administration (SBA) or a credit union. In fact, the SBA offers many loan programs that are specifically targeted to help businesses that have certain requirements. This may include loans for rural businesses, microloans for small purchases, women-owned businesses, minority-owned businesses, Veteran-owned businesses and much more.


Traditional loans through SBA, banks and credit union can take a long time to obtain. For companies that need immediate access to working capital loans or short-term business capital, small business loans are more advantageous than traditional loans.


There are generally two options when applying for a business loan:


  • Some term loans allow businesses to take out the full lump sum of the loan up front and then pay it back, with interest, over a specified period of time.
  • A line of credit provides businesses with a set amount of money they can access. Provided they pay it back, they can borrow against this amount as many times as needed.


Term loans are generally best for making large purchases, as they take longer for businesses to pay back. Lines of credit are used like credit cards to help support daily operations and invoices. This is beneficial because businesses do not have to worry about unpredictable interest rates and fees.


Loans provide much greater peace of mind and security than credit cards. Credit cards come with the hassle of data breaches and may be stolen by people visiting offices. Loans allow money to only be accessed by authorized personnel, which means it is always there in the event of emergencies.


Loans give businesses the freedom not to be tied down by high credit card debt. Businesses can purchase new equipment or inventory, which helps provide a higher revenue stream for future growth.


Having a better, more reliable loan structure allows businesses to grow faster, operate with less debt and invest more in their growing companies.


My Business Credit Lines Agencies

My Business Credit Lines has over 500 Business Lenders around the United States that offer different types of business funding. We do all of the searching for you so you can have access to lenders in your area all in one place. Any of the lenders will be able to help get you the credit line you need to get your small business off on the right track to success.

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