How do you use your LOC?

Most businesses should consider having a Line of Credit (LOC) to manage timing fluctuations in their cash inflows and outflows.

How a business manages the LOC is critical for financial prudence and long-term financial success.

If the LOC is used for working capital needs and short-term emergencies, it is perfectly acceptable. However, use of the LOC for longer-term investments or funding continuing losses might lead to a financial disaster.

Be prudent and wise in the use of your LOC.

For more information, please contact us at Patel CFO Services at

Ravi Patel

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