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

Рет қаралды 22,192

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
To learn more about CFO services, go to: claracfo.com/cfo-services/
💲 Need an accounting system? We use Quickbooks Online with clients and recommend it as the best accounting system for small businesses. Sign up to get a discounted subscription for 12 months! claracfo.com/QBO
🙋‍♀‍Got Employees? Talk to ADP! They can help you if you are a small business owner or an accountant or advisor who works with small businesses. Learn more here: claracfo.com/adprun
💸Pay vendors any way they want and get paid faster! Accept credit cards without paying merchant fees! Melio is a fantastic payments solution for every small business! claracfo.com/melio
(As an affiliate or referral partner for these companies, I may earn rewards from qualifying purchases)
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.
CODE: SZ3UWHMDIOUHZISQ, KOWKERQKWQP2W95L

Пікірлер: 59

@arcticwolfx8 10 ай бұрын

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

@crunkybrewster3416 10 ай 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

@cbright28 5 ай бұрын

This video was seriously so helpful. Thank you.

@sabahaile7685 6 ай бұрын

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

@euniceesinam2573 2 ай бұрын

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

@melissamoreno5575 19 күн бұрын

Thanks for this information.

@hamzaalkurdy7696 11 ай бұрын

Wow thank you for the clear pure information

@Angell_Lee 3 ай бұрын

Wow, great video!

@wbaiey0 7 ай бұрын

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

@kaserarts8923 10 күн 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 4 күн бұрын

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

@ramican9155 2 ай бұрын

Well done!!!

@Tempe401 Ай бұрын

Thank you for explaining

@TheStonersCommittee 11 ай бұрын

Great video

@Daisy-yv7bh 9 ай бұрын

That was very helpful, thank you!

@ClaraCFO 9 ай бұрын

Great to hear! Thanks for watching!

@parasparas-wd5kq 3 ай бұрын

great explanation

@Stickerbob11 Жыл бұрын

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

@ClaraCFO 11 ай 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!

@williamhdenney3897 Жыл бұрын

New space looks great! Very useful information.

@ClaraCFO Жыл бұрын

Thank you! Glad it is helpful!

@WestPhilly 11 ай бұрын

Well explained! Thanks.

@ClaraCFO 11 ай бұрын

Thanks for watching!

@sofiamerino195 4 ай бұрын

Great video! Thank you so much 😊

@ClaraCFO 4 ай бұрын

Glad it was helpful!

@RickyCHSWindowCleaning Ай бұрын

Love your content!

@ClaraCFO Ай бұрын

Thank you so much!!

@edgarimanov 8 ай бұрын

Great video! Super insightful

@ClaraCFO 8 ай бұрын

Glad it was helpful!

@TheStonersCommittee 11 ай бұрын

Cool space 😊

@ngole3 9 ай бұрын

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

@ClaraCFO 9 ай бұрын

Thanks so much!!!

@emmanuelgladys5213 3 күн бұрын

thanks🙂

@HamidurRahman Жыл бұрын

Wow Good background, Pls share more helpful video Hannah "

@ClaraCFO Жыл бұрын

Thank you! I’ll keep the videos coming!

@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.

@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!

@LouWillx23 6 ай бұрын

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

@gharper248 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 Ай бұрын

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

@FreeLancerTanzina-wp7ev Жыл бұрын

Nice❤❤

@ClaraCFO Жыл бұрын

Thanks’

@FreeLancerTanzina-wp7ev Жыл бұрын

@@ClaraCFO welcome dear💕

@axel12GT 3 ай бұрын

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

@ochicoloto3524 10 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 8 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.

@user-cw7eu8ym5o 4 ай бұрын

Heloc vs. Line of business credit?

@ClaraCFO 4 ай бұрын

HELOC stands for Home Equity Line of Credit - so your home is used as collateral for a HELOC. And HELOCs are not used for business, but for personal.

@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 5 ай бұрын

Im pretty sure its just the transmission segmentation

@PeopleTheoryPodcast 3 ай бұрын

It's probably the auto focus of the camera