What's Better for your business? - Loans vs Lines of Credit EXPLAINED

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What's Better for your business? - Loans vs Lines of Credit EXPLAINED

Рет қаралды 24,354

Күн бұрын

Business owners often wonder whether they should get a loan or a line of credit for different business situations. Both are debt instruments that can be used strategically to really help a small business financially.
What are the difference between loans and lines of credit and when should you use each? That's what this video will help you with!
0:00 Notice anything new?
1:01 Debt Instruments
2:18 What is a Loan?
4:42 Amortization Schedule
6:04 Revolving Line of Credit
9:05 Tip for Lines of Credit
10:20 Summary of differences
11:30 When do you use a loan vs. line of credit
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
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Пікірлер: 60

@crunkybrewster3416 Жыл бұрын

Great video. I've been seeing a lot of videos on KZfaq regarding velocity banking, and they all revolve around PLOC and/or HELOC. This breaks down the lines of credit much better than most

@sabahaile7685 7 ай бұрын

Great job, especially the way you explained the importance, difference and use of both. Thank you

@euniceesinam2573 3 ай бұрын

Thanks so much. This is the best explanation of the differences between these two debt instruments. Subscribed!

@cbright28 6 ай бұрын

This video was seriously so helpful. Thank you.

@arcticwolfx8 11 ай бұрын

This was exactly what ive been trying to find out, thank you for breaking it down, just subscribed.

@kaserarts8923 Ай бұрын

This was so helpful! You have helped me realize we need a buisness line of credit rather than a loan. Thank you for your simple explanations! You've convinced me to subscribe.

@ClaraCFO Ай бұрын

So glad I could clear that up for you! Lines of credit are a fantastic tool for business!

@gharper248 3 ай бұрын

Great video. One thing about the new space / video. The zooming in and out is a little distracting. I'm not sure if your camera is doing that automatically or if that is something you are doing in editing. A little distracting in my opinion. But other than that, all good.

@Rightchoiceslc 3 ай бұрын

I think it’s a feature built into Mac products when you move your hands or head

@melissamoreno5575 2 ай бұрын

Thanks for this information.

@williamhdenney3897 Жыл бұрын

New space looks great! Very useful information.

@ClaraCFO Жыл бұрын

Thank you! Glad it is helpful!

@Stickerbob11 Жыл бұрын

It’s amazing how far you have come since I first starting following your content years ago…

@ClaraCFO Жыл бұрын

It surprises me everyday! Thanks for following along our journey!

@rodneypaglialong1038 Жыл бұрын

Your new space!! It looks spectacular!

@ClaraCFO Жыл бұрын

Thanks!! Still need to fill up some empty space, but I’m loving it!

@wbaiey0 8 ай бұрын

Go.Go. Go. Love and appreciate your video. Thank you

@lindenhawthorn4761 Жыл бұрын

The last two years I've been doing accounts payable there's definitely been a couple sticky situations where it would have been nice to have an extra safety net. One time a vendor had to stop taking orders from us for two weeks or so because our balance was getting too high and another time we had to buy a pretty high dollar item(40k) and it was for a job that took about six weeks to complete.

@ClaraCFO Жыл бұрын

Perfect uses of a line of credit!

@Tempe401 2 ай бұрын

Thank you for explaining

@Angell_Lee 4 ай бұрын

Wow, great video!

@WestPhilly Жыл бұрын

Well explained! Thanks.

@ClaraCFO Жыл бұрын

Thanks for watching!

@hamzaalkurdy7696 Жыл бұрын

Wow thank you for the clear pure information

@sofiamerino195 5 ай бұрын

Great video! Thank you so much 😊

@ClaraCFO 5 ай бұрын

Glad it was helpful!

@emmanuelgladys5213 Ай бұрын

thanks🙂

@ramican9155 3 ай бұрын

Well done!!!

@ngole3 11 ай бұрын

Good job Clara. This content really helped me. You got a new subscriber. God bless !

@ClaraCFO 11 ай бұрын

Thanks so much!!!

@TheStonersCommittee Жыл бұрын

Great video

@HamidurRahman Жыл бұрын

Wow Good background, Pls share more helpful video Hannah "

@ClaraCFO Жыл бұрын

Thank you! I’ll keep the videos coming!

@RickyCHSWindowCleaning 3 ай бұрын

Love your content!

@ClaraCFO 3 ай бұрын

Thank you so much!!

@TheStonersCommittee Жыл бұрын

Cool space 😊

@parasparas-wd5kq 4 ай бұрын

great explanation

@Daisy-yv7bh 11 ай бұрын

That was very helpful, thank you!

@ClaraCFO 11 ай бұрын

Great to hear! Thanks for watching!

@edgarimanov 10 ай бұрын

Great video! Super insightful

@ClaraCFO 10 ай бұрын

Glad it was helpful!

@junembulu1437 Жыл бұрын

Nice background, Hannah! what do the banks use to determine how much line of credit they will give you?

@ClaraCFO Жыл бұрын

They typically look at your balance sheet first and make sure that you don’t have too much debt to assets, but they also will look at your p&l to make sure you aren’t running in the red constantly.

@axel12GT 4 ай бұрын

What happens if you don't let a line of credit rest besides banks not liking it?

@LouWillx23 7 ай бұрын

Question , how can you not get another loan after it’s been repaid ?

@ochicoloto3524 11 ай бұрын

Thanks for the content. Can I take a business line of credit and pay off a businesdebt I took using personal credit card?

@DaveOwers 10 ай бұрын

Yes you can, just make sure you make regular payments to the line of credit. If you don't make regular payments the bank can shut down your line of credit anytime.

@rjmaryman Жыл бұрын

Just an aside. The camera zooms in and out as you move your hands. The material presented was fine but the constant in and out of the automatic camera was distracting!

@ClaraCFO Жыл бұрын

Thanks for the feedback! I’m giving this to our editor.

@ampthegamergod2223 6 ай бұрын

Im pretty sure its just the transmission segmentation

@PeopleTheoryPodcast 5 ай бұрын

It's probably the auto focus of the camera