Lines of credit are just as important in the business world as they are for individuals looking to gain control over their finances, and for many of the same reasons. They’re reusable, easy to manage, and since business credit lines work a lot like personal ones, familiar. There’s a lot more to their usefulness, though, especially for small businesses. Here are some of the most overlooked but important benefits that come with a business credit line.

1. They Usually Come With Grace Periods

Like business credit cards, lines of credit often come with a short grace period after a withdrawal, during which there is no interest assessed if the balance is paid down again. If your lender isn’t offering a grace period you should look to see if they have any similar incentives that could offset the loss of this benefit. Frequently, the same policy is being offered under language like six months same as cash. A policy of assessing interest only on withdrawals over thirty days old is also the same idea in a slightly different presentation, although it might not be the clearest way to put things.

2. Increasing Your Maximum Balance Is Simple

When you use a cash flow management option like invoice financing, your maximum advance is dictated by the invoices currently on your books. Lenders offering credit lines work off your business income, however. They usually base the line’s maximum balance on annual income as well.

Even if your company has frequent low demand period in its annual cycle, you can request a review of your payment history and expect to see a balance increase as long as your overall yearly receipts are growing. Most of the time, you don’t even need to fill out an application. Instead, it’s just a quick phone conversation or email chain and the submission of financial records to support your position.

3. They Cover the Gap Between Work and Payment

Most people associate lines of credit with purchase or project financing because that’s the way personal credit lines tend to be used, and it’s also how business credit cards work. While you can use a line of credit that way, it’s even more powerful as a dedicated cash flow tool.

If you have a credit line that exists only to front payment to vendors, utilities, and other debtors when you’re waiting on payment for a project or working through one that’s almost done. It’s a useful bridge instrument that saves you the trouble of filling out an application whenever you need a small cash advance for a couple weeks, and that extra efficiency adds up over time. If not in cash, then in saved labor.