Is a line of credit right for your business recession plan?

By LISA ANTHONY of NerdWallet

The possibility of a recession in the near future and the likely reduction in credit availability that is often associated with it may drive some small-business owners to explore financing options like a line of credit. Applying for a business line of credit may make sense for businesses that experience inconsistent cash flow and need access to financing regularly. However, there are drawbacks to having a line of credit, particularly if your business doesn’t have a need for funds and you aren’t likely to use a credit line.