As a business owner, it’s incredibly likely that you’ll need to borrow money at some point. Making improvements to your company, adding inventory and funding growth often requires more cash than you have on hand. Though traditional business loans are always an option, many business owners see more success with lines of credit. These are revolving loans that allow you to borrow money on demand and only pay interest on the amount of money you use. Here’s what you need to know to find the best credit line for your business’s needs.

Start With Your Bank

The best place to start looking for any type of loan is your business’s bank or local credit union. Talk to your banker and discuss your business’s needs and your financial situation. Let them know that you’re interested in a credit line rather than a traditional business loan so they can start compiling the right quotes. When you’re talking to the banker, it’s also helpful to let them know how much money you’re looking to borrow. This helps them better narrow down the types of credit lines that will work best for your needs.

Compare Options With Alternative Lenders

Though your bank should always be the first financial institution that you talk to, it shouldn’t be the only one you speak with. You need to compare your options and find out what other lenders will issue you. Talk to other banks and credit unions in your area and don’t hesitate to turn your search online. Many online lenders are happy to help you find a credit line that will work for your business. Once you get quotes from several lenders, review them in detail.

Look at the interest rates they’ll charge, the amount of credit they’re willing to issue and any use restrictions they might place on the line itself. You’ll also want to compare the additional fees, late penalties and other incidental costs associated with the credit line itself. Remember, some lenders charge high fees that make their lower interest rates less attractive.

Take Your Time

Finding a lender you can trust isn’t something you should rush into. You need to compare your options and understand how each credit line will impact your business and your bottom line. Take your time and make sure you understand the terms completely before you make a decision.

Finding the right lines of credit for your business can take the strain out of your daily operations. Keep these tips in mind and you’ll find the right credit line in no time.