Private lines of credit are an alternative to traditional bank lines of credit that have emerged as perfect travel companions to mini online credits. They are a type of open credits with a different relationship between the entity and the holder, and they have their market since they cover a specific type of needs.
In general, a line of credit is a sum of money that a bank or financial institution makes available to you at your request and that you can use in part or in full for a certain time, normally a period of one or more years. (renewable). The entity lends you extra money in an account and charges you interest for the amount you use, only for the time you use it and until you pay it back. And so on.
The current market for this type of credit lines is open and wide, and a small interest is paid for always having the money available, although much less than if you asked for the money available with a regular online loan.
This type of product is almost always used by companies and freelancers to attend payments when they need to do so and do not have cash in cash, although also families that have children studying or businesses that have received a subsidy, but have not received it and need to repay it. In the case of businesses, it is perfect to advance payrolls while waiting to be collected from clients, or to pay suppliers or taxes with flexibility.
The idea is to have an available balance to face short moments of need.
Requesting a line of credit online is very easy: there are many entities that offer both loans and flexible lines of credit. The difference is clear: a loan is money that you receive in full, and that you can return at the end of the term or through installments. In a line of credit, you receive an account balance and use it in whole or in part, until the term expires, and during that time you are charged interest depending on what you have used and for how long.
Lines of credit can be requested in person or for business, online, without paperwork or cumbersome bureaucracy, any day of the week, at all hours. You just have to compare the different products until you find the one that best suits your needs.