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A working capital line of credit is a funding option that allows business owners get money for business for regular operation costs when it’s needed. A business gets a definite credit limit, and may use money up to that limit at any time. This money is often used on covering essential spending in the short period. The balance is often covered with the cash got as income from the other sources.

With this financial tool, you don’t have to pay the interest on the entire used amount of money. Instead, you have to pay interest on the balance that is calculated at the billing period. This makes it possible to use money paying nothing, in case you can return it on time.

You can also increase a repayment period of your outstanding balance. You are just required to cover the minimum payment and make some extra payments to cover the body of the credit.