A business line of credit gives companies the flexibility to manage cash flow, handle seasonal changes, and invest in growth. Unlike a term loan, you only pay interest on what you use, making it a smart tool for both established businesses and new entrepreneurs.
In today’s episode, we sit down with Gavin Fisher, Founder and President of Rams Head Funding, to explore one of the most versatile financial tools for business owners — the line of credit. Fisher shares how this flexible funding option empowers companies of all sizes to manage cash flow, navigate seasonal changes, and invest in growth opportunities. Whether you’re an established business or a young entrepreneur, a line of credit offers the adaptability and long-term stability every business needs to thrive.
Transcript:
Speaker 1: We are here today with Gavin Fisher, founder and president of Rams Head Funding in Indianapolis. Good to see you today.
Speaker 2 (Gavin Fisher): Yes, likewise. Thank you for having me.
Speaker 1: Let’s talk about all things Rams Head Funding and what you provide to clients. Can you describe business lines of credit?
Speaker 2: Oh, absolutely. The most versatile product we probably offer would be a line of credit. And I say that because no matter your industry or company size, you’re able to use it as a business owner. You have access to that money, and the line of credit comes into play mainly for companies that have some seasonality to their business. They know they’re going to have downtime, so they can pull money from that line of credit, and when a big payment comes in, they can pay it back.
That way, even though the interest rate might be annualized, it becomes smaller because you use it, you pay it back, and you repeat that cycle. The good news about a line of credit is that it stays with you indefinitely. We can continually review it—for example, we might give you $100,000 today, then six months from now, boost it to $150,000 if we see good payment history. Another six months later, it could increase again to $250,000. This provides flexibility as your company grows.
Any industry can use it. For instance, we have a client in the retail space whose business is very seasonal. Their sales peak during the holidays, then taper off through spring and summer before picking up again. They use their line of credit around this time of year for inventory, then pay it back as sales increase. Later in the year, maybe March through May, they’ll use it again to cover payroll or other expenses during slower months.
We also have clients who use their line of credit constantly—drawing on it every month and paying it back as they wait for contracts or invoices to be paid.
Speaker 1: Do you find this beneficial for young entrepreneurs?
Speaker 2: It can be, yes. I think it’s a great way for early-stage businesses to get established. Having that line of credit gives entrepreneurs flexibility when they’re making quick decisions—whether it’s buying equipment, covering an invoice, or paying for marketing expenses. They can draw from the line of credit, knowing that as new revenue comes in, they’ll be able to pay it back.
This is different from a term note, where payments are fixed—say $1,000 a month—until the loan is paid off. With a line of credit, you only pay interest on what you actually use. So, if you have $100,000 available and you only need $50,000, you’re only paying interest on that amount. You can take more or pay it down as needed, and your payments will adjust accordingly. That flexibility is what makes it such a valuable tool for growing businesses.
How does a line of credit support seasonal businesses?
Many businesses experience ups and downs throughout the year. A business line of credit helps owners bridge the gap during slow periods. For example, retailers often need extra funds to buy inventory before the busy season and then pay it back as sales pick up. This approach keeps operations running smoothly, even when cash flow is tight.
“A business line of credit isn’t just for emergencies—it’s a smart way to manage cash flow, seize new opportunities, and keep your business moving forward through every season.”
— Gavin Fisher, Rams Head Funding
Why is flexibility important for entrepreneurs?
Entrepreneurs often face unexpected expenses or opportunities. A line of credit gives them the freedom to act quickly—whether it’s purchasing equipment, covering payroll, or investing in marketing. Since you only pay interest on what you use, it’s a cost-effective way to manage business needs as they arise.
How does a line of credit differ from a term loan?
With a term loan, you borrow a set amount and pay it back in fixed installments. A business line of credit, on the other hand, lets you borrow what you need, when you need it, up to your approved limit. You can pay it down and borrow again as your business requires, making it a more flexible option for many companies.
Frequently Asked Questions
What is a business line of credit?
A business line of credit is a flexible funding option that lets you borrow up to a set limit, pay it back, and borrow again as needed.
How can a line of credit help with seasonal cash flow?
It allows you to cover expenses during slow periods and repay the balance when business picks up, keeping operations steady year-round.
Do I pay interest on the full line of credit amount?
No, you only pay interest on the amount you actually use, not the total approved limit.
Is a line of credit suitable for new businesses?
Yes, it can help entrepreneurs manage early expenses and take advantage of opportunities as they arise.
Gavin Fisher
About the Author
Gavin Fisher is the Founder and President of Rams Head Funding, a leading provider of business lending and real estate financing solutions across the Midwest. A Ball State University graduate with more than 20 years in consumer and commercial finance, he’s known for helping entrepreneurs and investors access the capital they need to grow. Gavin combines deep industry expertise with a relationship-driven approach that delivers transparent, results-focused funding strategies.
