All businesses should have a line of credit in place, just in case. If you are one of many with the mistaken belief that you don't need a loan right now, so a line of credit isn't necessary, you are one of many of those mistaken people that find themselves in a financial tough spot in tighter times.

A line of credit is not a loan, per se. It is money that is available to you if and when you need it. Its money you will know is there just in case, but don't have to worry about the rest of the time.

Here are some of the reasons that a line of credit may come in handy:

* Lease and Salary in an Off Month ? Not all months are perfect profit months, are they? If you have one month where things are a little more lean than you would like them to be, you can draw on a line of credit to get through that time to the better days ahead.

* Inventory Purchases ? Every now and then you will come upon a deal that's too good to pass up for some of your inventory items. If you don't have access to the money to take advantage of the deal, your competition may get the jump on you. A line of credit will make sure you have enough money at the ready.

* Start Up - Whether it's a new branch of your existing business or you are starting a whole new business altogether, having a line of credit in advance can make sure you have the start up finances you need.

* New Equipment ? There are new advances in technology coming out every day. Why not take advantage of them? If you have a line of credit in place, you will be ready to buy or lease the equipment that can take your business to the next level.

* Real Estate ? In this down real estate market, it is a great time to be a buyer. If you were thinking of purchasing more real estate, or purchasing an office building for your business, you may be able to get a great deal, if you have the funds to back it up. This is where a line of credit can come in very handy.

* Business Takeover ? If your competition is having a little bit of a tougher time, but absorbing them into your company would make your company stronger, this may be a great time for a takeover bid. If you have a line of credit to back it up, you may be able to make a sweet deal.

* Taxes ? While you should always be saving for your quarterly or annual taxes, you may want to instead use your line of credit to pay those taxes and keep the rest of your money as capital waiting to be used.

One of the biggest mistakes people make concerning business lines of credit is waiting until they need the money to apply for it. By then, there are usually a few dings on their business credit profile and they will have a tougher time getting approval.

Pat Gage, The Opportunity Creator, and a leading expert in the field of business credit has helped a number of clients target his specialty - starting, expanding, and growing their businesses through his trademarked 10 Steps to Money System. The Opportunity Creator is not only a sought after business credit coach, but also a national speaker. For more information visit