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 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.