An advance or a line of credit?
They solve different problems. Which one fits a one-off purchase, and which fits an uneven month.
September 4, 2026 · 1 min read
The difference is simpler than the names suggest. An advance is for something you are buying once. A line of credit is for a gap that keeps reappearing.
An advance suits a known number
A second oven, a van, a bulk inventory buy before a season. You know the amount, you take it once, and you repay on a fixed schedule that ends. The cost is settled on day one.
A line suits an uneven month
Receivables landing three weeks late. Payroll falling before a big invoice clears. You draw what you need and pay for what you drew. It costs more per dollar used and less per dollar available.
The honest test
If you can name the thing you are buying and its price, take the advance — it is cheaper and it finishes.
If you cannot, and the problem is timing rather than a purchase, a line is the better shape. Taking an advance to fix a timing problem usually means taking another one in four months.