If your business does not currently have credit cards or lines of credit, this is something that you should consider getting. This type of financing is generally easier to get than a loan and offers several benefits for your business.

1. Improve Your Credit Score

Even if you don’t need one right now, there will likely come a time when you need a lease, loan or other financing. If you have a low credit score from past financial trouble or you don’t have much credit history, this can make it more difficult to qualify. Acquiring and using credit can help you build up your credit score which can make it easier for you to get other types of funding in the future.

2. Separate Personal and Business Finances

Especially for small businesses that are just starting out, it can be tempting to keep your personal and business finances in the same place. However, this can cause complications down the line. It can make it more difficult to figure out what to include in your taxes and might leave you personally responsible for any financial problems that your business faces. It is better to keep these separate, and having business credit can help you do that.

3. Access to Flexible Funding

Some types of loans or other financing options can come with strict requirements for how you are allowed to use the money that you are given. With lines of credit, this is not the case. With most credit options, you can use these funds for any business purpose that you choose. If you originally planned to use the money for one thing but decide that something else is more important right now, you can change your mind with no trouble at all.

4. Have a Safety Net

It’s not necessarily a fun thing to consider, but many businesses go through difficult periods. There are several reasons that this might happen, and not all of them are under your control. Maybe you had a slow period and didn’t generate as much revenue as expected, or maybe a piece of equipment broke down and you have unexpected repair fees. Having credit can make it easier to get through these situations. As long as you pay back what you’ve borrowed, this funding can be used again as needed, so you always have that extra financial cushion.

Lines of credit can benefit your business in a variety of ways. This type of financing is often relatively simple to apply and qualify for and can make it easier for you to get additional funding when you need it.