How to Use a Line of Credit the Right Way | Full Send CFO

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📢 A line of credit can be a powerful tool for cash flow management—but only if used correctly. In this episode, we cover:
✔️ What a line of credit really is (and what it isn’t)
✔️ The best times to use it for growth without risking financial strain
✔️ Biggest mistakes businesses make with lines of credit
✔️ How to manage it like a CFO for long-term success

⏱️ Chapters

00:00 - Introduction: The Power & Risks of a Line of Credit
00:48 - What is a Line of Credit (and What It’s Not)?
01:44 - When to Use a Line of Credit Strategically
02:38 - Best Uses: Working Capital, Seasonal Fluctuations & Marketing
03:32 - The Wrong Reasons to Use a Line of Credit
04:38 - How to Manage a Line of Credit Like a CFO
05:55 - Key Terms to Negotiate Before Signing
06:37 - Final Thoughts: Is Your Line of Credit Helping or Hurting Your Business?

Key Takeaways:
✔️ A line of credit isn’t cash flow—it’s a tool that must be used wisely.
✔️ Best used for short-term working capital needs, not long-term debt.
✔️ Avoid debt spirals—never use a line of credit to pay off other debt.
✔️ Negotiate terms upfront—interest rates, fees, collateral & repayment flexibility.
✔️ Maintain a strong financial position to get the best credit terms.

📢 How do you use your line of credit? Comment below!

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