What's Better for your business? - Loans vs Lines of Credit EXPLAINED
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- เผยแพร่เมื่อ 6 ก.ค. 2024
- Business owners often wonder whether they should get a loan or a line of credit for different business situations. Both are debt instruments that can be used strategically to really help a small business financially.
What are the difference between loans and lines of credit and when should you use each? That's what this video will help you with!
0:00 Notice anything new?
1:01 Debt Instruments
2:18 What is a Loan?
4:42 Amortization Schedule
6:04 Revolving Line of Credit
9:05 Tip for Lines of Credit
10:20 Summary of differences
11:30 When do you use a loan vs. line of credit
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
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This was exactly what ive been trying to find out, thank you for breaking it down, just subscribed.
Great video. I've been seeing a lot of videos on TH-cam regarding velocity banking, and they all revolve around PLOC and/or HELOC. This breaks down the lines of credit much better than most
This video was seriously so helpful. Thank you.
Great job, especially the way you explained the importance, difference and use of both. Thank you
Thanks so much. This is the best explanation of the differences between these two debt instruments. Subscribed!
Thanks for this information.
Wow thank you for the clear pure information
Wow, great video!
Go.Go. Go. Love and appreciate your video. Thank you
This was so helpful! You have helped me realize we need a buisness line of credit rather than a loan. Thank you for your simple explanations! You've convinced me to subscribe.
So glad I could clear that up for you! Lines of credit are a fantastic tool for business!
Well done!!!
Thank you for explaining
Great video
That was very helpful, thank you!
Great to hear! Thanks for watching!
great explanation
It’s amazing how far you have come since I first starting following your content years ago…
It surprises me everyday! Thanks for following along our journey!
Your new space!! It looks spectacular!
Thanks!! Still need to fill up some empty space, but I’m loving it!
New space looks great! Very useful information.
Thank you! Glad it is helpful!
Well explained! Thanks.
Thanks for watching!
Great video! Thank you so much 😊
Glad it was helpful!
Love your content!
Thank you so much!!
Great video! Super insightful
Glad it was helpful!
Cool space 😊
Good job Clara. This content really helped me. You got a new subscriber. God bless !
Thanks so much!!!
thanks🙂
Wow Good background, Pls share more helpful video Hannah "
Thank you! I’ll keep the videos coming!
Nice background, Hannah! what do the banks use to determine how much line of credit they will give you?
They typically look at your balance sheet first and make sure that you don’t have too much debt to assets, but they also will look at your p&l to make sure you aren’t running in the red constantly.
The last two years I've been doing accounts payable there's definitely been a couple sticky situations where it would have been nice to have an extra safety net. One time a vendor had to stop taking orders from us for two weeks or so because our balance was getting too high and another time we had to buy a pretty high dollar item(40k) and it was for a job that took about six weeks to complete.
Perfect uses of a line of credit!
Question , how can you not get another loan after it’s been repaid ?
Great video. One thing about the new space / video. The zooming in and out is a little distracting. I'm not sure if your camera is doing that automatically or if that is something you are doing in editing. A little distracting in my opinion. But other than that, all good.
I think it’s a feature built into Mac products when you move your hands or head
Nice❤❤
Thanks’
@@ClaraCFO welcome dear💕
What happens if you don't let a line of credit rest besides banks not liking it?
Thanks for the content. Can I take a business line of credit and pay off a businesdebt I took using personal credit card?
Yes you can, just make sure you make regular payments to the line of credit.
If you don't make regular payments the bank can shut down your line of credit anytime.
Heloc vs. Line of business credit?
HELOC stands for Home Equity Line of Credit - so your home is used as collateral for a HELOC. And HELOCs are not used for business, but for personal.
Just an aside. The camera zooms in and out as you move your hands. The material presented was fine but the constant in and out of the automatic camera was distracting!
Thanks for the feedback! I’m giving this to our editor.
Im pretty sure its just the transmission segmentation
It's probably the auto focus of the camera
2.10 min that much you talked without even starting with the subject that I clicked for
Gave you thumbs down 👎🏻 take it as a feedback
You waste too much time in the beginning which is a huge turn off for new visotors