Having trouble building credit? A personal line of credit is an unsecured loan product, another loan alternative useful to a small business. It allows you to borrow up to a set maximum, for example, $5,000. You can tap into those available funds over time as needed. You pay interest only on the outstanding amount borrowed. Borrowing a little and paying back quickly can help you build credibility with a bank and facilitate obtaining future loans or a higher line of credit. Depending upon the lending institution, you may be able to access the money through a branch, internet transfer, checks, or debit card. Compare the differences to determine if this choice is better for you than a conventional loan. Do you need all the cash up front or over time? Is there a grace period on minimum payments? Is the interest tax deductible? Can you pay only the interest for months you are short on cash? What can you qualify for with your credit rating?