Sunny Bright's The Tanning Parlor is in the middle of its busy season.The hiring of extra help,some unexpected repairs on equipment,etc. ,has led to a shortage of operating capital.What type of financing would Sunny most likely use in this situation?

Question

Quizplus · Accepted Answer

A line of credit provides flexible short-term financing to small businesses that need to cover unexpected expenses, such as repairs or extra staff during busy seasons. This type of financing allows businesses to draw funds from a pre-approved credit limit as needed, rather than receiving a lump sum loan with a fixed repayment schedule. This makes it a good choice for Sunny Bright's The Tanning Parlor, as it allows them to cover their operating capital needs without having to take on a large debt or commit to a rigid repayment schedule.

Sunny Bright's the Tanning Parlor Is in the Middle of Its