A business line of credit is a type of small-business loan that provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say $100,000 — and pay interest only on the portion of the money that you borrow. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit. A line of credit works similarly to a credit card. Need to manage cash flow? Buy inventory? Pay for a surprise expense? Then a business line of credit makes sense.