How to Use a Line of Credit During the Pandemic

A line of credit is one of the most flexible forms of financing and has become even more flexible during the pandemic. The fact that you can borrow an unlimited amount as many times as you need makes it appealing to many business owners. Here are some ways businesses can use a lien of credit during these tough times in a pandemic.

Purchase Orders in Bulk

The pandemic has affected the way shipping gets handled due to the post office, business closures and other disruptions that have caused shipping delays all over the world. It is advised that you purchase orders in bulk so you can reduce your reliance on shipping timelines and also improve customer experience. Delays in shipping have negatively affected many customers experiences with businesses who have had issues with shipping.

You can use your line of credit to help you make purchase orders in bulk. Over time you can pay back what you have borrowed once you have sold enough of your inventory. Once the line of credit is repaid it frees up that line of credit for the next time you need it.

Purchase Safety Equipment

With the pandemic, you want to make your business as safe as possible for your customers. Plexiglass and face shields have become important equipment for many industries. It can be an additional expense that you were not expecting so you can use a line of credit for that equipment. Taking care of your employees and customers is a priority during these times and a line of credit can help you finance these purchases.

Hire Cleaning Services

You may need to hire additional cleaning or janitorial employees to have your office or storefront professionally cleaned more often. A line of credit can help you cover these additional expenses when you need them.

Closure Costs

Businesses have been forced to shut down for a period of time during the pandemic. It can be stressful to think about how your business is going to hold up during this time but a line of credit acts as a financial safety net so that you are covered and prepared if and when closures occur.

Employee Sick Pay

When employees do not have sick pay, they still feel the pressure to come into work when they are not feeling well. Provide additional paid sick days for your employees which will build employee morale and improve employee performance.

Purchase Remote Working Equipment

Many businesses during this time have realized that they can work from home during this time. You may have considered purchasing work-from-home equipment such as laptops so your employees can work from home. You can get this type of equipment with a line of credit so that you are able to run your business as smoothly as possible while employees work remotely.


If your cash is tight during this time or have overdue accounts receivables you can use a line of credit to pay for payroll. You can repay and use the line of credit for other business needs when the working capital is fulfilled.

Prepare of Uncertainty

A pandemic has shown that uncertainty is guaranteed. It is important to note that there can be situations that arise that can affect your business and that having a plan to prepare is necessary. Lines of credit are helpful to businesses of any size or industry to help them keep afloat during unknown times.