# An advance or a line of credit?

They solve different problems. Which one fits a one-off purchase, and which fits an uneven month.

Published: 2026-09-04 · Spark

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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.