Confused about choosing a term loan or a line of credit? We break down the key differences, ideal use cases, and how to decide what’s best for your business’s financial strategy.

Outline:

• Introduction: Frame the dilemma every business owner faces when seeking flexible capital.
• Defining the Tools:
  • Business Term Loans: Explained (lump sum, fixed repayment, set term). Best for specific, one-time investments (equipment, expansion, acquisition).
  • Business Line of Credit: Explained (revolving credit, draw as needed, pay interest only on used amount). Best for ongoing cash flow gaps, inventory, and unexpected opportunities.
• Side-by-Side Comparison: A simple table comparing key factors: Funding Type, Repayment, Ideal For, and Best Suited For.
• How to Choose: A guided set of questions.
  • Ask: “Do I have a single, known cost?” → Lean toward Loan.
  • Ask: “Do I need a safety net for unpredictable expenses?” → Lean toward LOC.
• Conclusion: Emphasize that the right choice depends on strategic goals, and that a private lender can often provide more tailored versions of both products. End with a CTA to discuss your specific scenario.