Reply To: Hi,I have a small beekeeping and transport business. I currently have $9200 in the business bank account. I have a monthly loan repayment of $495 coming out. I also have a business line of credit that i have never used. Its interest rate is at 10.85%. I have an unexpected cost that came up with a truck of mine which will cost $5905. I also have to buy some more bees at $2020. That will leave me with around $1275 cash in my business bank account for the month of April. Cash will start coming in around June 1st at $1000 a week.I am wondering if it is better to spend my cash from my bank or use the line of credit instead? just incase another unexpected cost comes up


Hi there- great questions
In response to your main point. Usually the cost associated with using a line of credit outweighs the interest on the cash you would receive in the bank. Therefore usually using the cash will be your best option, assuming you will continue to have access to the line of credit. Obviously we don’t know the full extent of your personal financial situation and as such this is just general advice.