A Business Loan provides a lump sum of money upfront and is typically used for major purchases or one-time expenses, such as equipment, vehicles, or business expansion. You repay the loan through fixed payments over a set period.
A Business Line of Credit (LOC) gives you access to a revolving credit limit that you can draw from as needed. You only pay interest on the amount you use, making it ideal for managing cash flow, covering unexpected expenses, or handling seasonal business needs.