Business Line of Credit for Liquor Stores

What This Is

• A revolving credit facility — borrow, repay, and borrow again up to a set limit
• Interest is only paid on the amount currently drawn, not the full credit limit
• More flexible than a term loan for expenses that vary month to month

Common Use Cases

• Purchasing inventory between longer funding cycles
• Covering unexpected equipment repairs
• Managing supplier invoices with varying due dates
• Handling short-term staffing costs during peak periods

How It Differs from a Term Loan

Feature	Line of Credit	Term Loan
Repayment	Revolving	Fixed schedule
Interest charged on	Drawn balance only	Full loan amount
Best for	Recurring/variable needs	One-time large purchase
Reuse	Yes, after repayment	No — one-time disbursement

What Lenders Evaluate

• Credit score (personal and business)
• Annual revenue and cash flow consistency
• Time in business
• Valid liquor license and compliance status