There are several key differences between a loan and a line of credit (LOC). Differences you need to go before putting yourself at the mercy of a bank loan manager or outside lender.

1. A loan is a one time deal

Once a loan is paid off, you have to reapply again if you need a cash-infusion in the future. A line of credit is always there to be drawn upon as needed, provided you keep it in good standing.

2. Loans are largely based on needs

When you need cash, you head to the bank or other creditor and apply.…