It’s an unfortunate truism in today’s society: Those who don’t need have plenty, and those who do need have little.

A clear example of this truism comes in the form of credit. Banks practically throw their cash at high-net worth individuals and well-established businesses in the form of low barriers to borrow and super-low interest rates; while those individuals and business who struggle can’t get credit without paying exorbitant interest rates, and/or jumping through many hoops that take weeks or months to overcome.

The Hardships of Small Businesses

Small Businesses can unfortunately experience many situations where revenue can be hindered.

As a small business owner, many factors impact your ability to generate revenue, and there are so many possible scenarios waiting to steal your cash away. Everything from annual business cycles, to weather mishaps, calamities, strikes or slowdowns with your supplier or shipper, non-paying customers, chargebacks, lawsuits, employee disputes, unanticipated competition, missteps in sales and marketing, losing an important proposal or deal, and on, and on, and on.

When a significant hit to your cash-flow occurs, will it be critical or will it be managed? A critical cash-flow hit usually involves two factors: It’s a surprise and you have no mechanisms to soften the blow. Conversely, a managed cash-flow hit won’t necessarily be a surprise and you will have options to help save the day.

History is littered with small and not-so-small businesses succumbing to calamities that turn into critical cash-flow hits. The difference between those businesses, and those that survive, are business leaders who do everything in their power to protect their business — and have options for a rainy day.

An Option to Help Overcome a Potential Struggle

Investing in a LOC when you don’t need it can really prove valuable in times of financial stuggle.

One valuable tool is a business (and/or personal) line-of-credit (LOC).

Unfortunately, most business leaders will tell me “I don’t need a line-of-credit now,” when I tell them to consider a LOC. The problem is, the best time to obtain a LOC is exactly when you don’t need it. You’re not subject to the pressures of time, and you’re less apt to confront the truism that banks will not issue a LOC to those can’t afford it.

In other words, when you and your business are in dire-straits and you need a cash-injection to help overcome a significant hit to your cash-flow, you may not be able to obtain a LOC when you need it, or it may take too long to make a difference to your business.

If you get the LOC now, it’s not costing you anything when you’re not borrowing from it. It’s literally there only to be used when you absolutely need it.

Therefore, what are you waiting for? Do you have a line-of-credit yet??!?

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