E-commerce advertisers have several options when it comes to financing their advertising spend, but one option that is often overlooked is a line of credit. A line of credit is a type of loan that allows borrowers to access funds as needed, up to a certain limit, and pay interest only on the amount borrowed.
Why Should I Use A Line Of Credit To Pay For My Ads?
In this blog post, we will discuss the top three reasons why e-commerce advertisers should consider utilizing a line of credit for their advertising spend instead of term loans.
- Flexibility: One of the biggest advantages of using a line of credit for your advertising spend is flexibility. With a term loan, you receive a lump sum of funds that must be repaid over a fixed period of time, regardless of whether you have used all of the funds or not. With a line of credit, however, you have the flexibility to borrow only the funds you need, when you need them. This allows you to better manage your cash flow and avoid overspending on advertising.
- Revolving Funds: Another advantage of a line of credit is the ability to access revolving funds. A term loan is a one-time disbursement of funds, and once the loan is repaid, the funds are no longer available. With a line of credit, however, you can continue to access funds as needed, up to your credit limit. This can be particularly useful for e-commerce advertisers who experience fluctuations in their advertising spend throughout the year.
- Lower Interest Rates: Finally, a line of credit typically has a lower interest rate than a term loan. This is because a line of credit is considered to be less risky for lenders than a term loan. With a term loan, the lender is taking on more risk because they are lending a large sum of money for a fixed period of time. With a line of credit, however, the lender is only lending a small portion of the credit limit at any given time, which is considered to be less risky.
A line of credit offers flexibility, revolving funds, and lower interest rates, making it a more cost-effective and efficient option for managing advertising expenses.
At Revenue Roll, we design all of our products & features with the ease of use for our subscribers in mind. We don’t make financing complicated - our fast & flexible lines of credit are there when you need them and they only accrue interest when you deploy the funds.