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You cannot start a small business without at least some penchant for risk. However, though most small business owners have a bit of a daredevil in them, many also have a practical nature, and that practical nature tells them that cash is good and credit is bad. If you’re one of those business owners who throws away all credit card offers and blanches when a customer tries to pay with a charge card, it may be time to turn to that daredevil and let him out. Unsecured lines of credit are not all bad and, in fact, may be just what you need to help your business grow.

Quick Access to Cash

First, it’s important to understand that a line of credit is not a loan. A line of credit allows you to draw out funds only when you need them, much like you do with your bank card. For instance, say you were approved for $20,000. That $20,000 remains in the bank, but if you need $1,000 for maintenance, or $10,000 to cover the costs of materials for a large job, you can draw money as easily as you would from your own bank account.

Repay Only What You Use

When you pull out a typical loan, you receive the entire lump sum and must repay the whole thing over the course of the loan term. You also have to pay the interest on the entire loan amount. When you open an unsecured line of credit, however, you only have to repay what you use. If you are approved for $40,000 but only use $8,000 of it, you only have to repay $8,000. Better yet, instead of being forced to pay interest on the $40,000, you only pay interest on the $8,000.

Cover In-Between Costs

You know those expenses that are too large to pay for out of pocket but not large enough to justify pulling out a loan? Unsecured lines of credit are great for covering those. Whether you need a couple thousand dollars to cover the cost of new computer equipment or $500 to cover the cost of a rental car, you can draw whatever amount you need without feeling guilty for doing so. This also helps keep cash in your account for when times are tight.

Grow Your Business’s Credit

Using an unsecured line of credit is a great way to increase your business’s credit score without going into debt. Though you may be against credit, you need a good score if you hope to grow your business.

Unsecured lines of credit can help you grow your business in ways you never thought were possible. Stop being afraid of credit and start embracing what it can do for you.