--- title: What the Heck is an Operating Line of Credit for Your Business? description: Small businesses need capital to survive especially when the economy changes. A good source for cash flow in your business is an operating line of credit. image: https://rmcu.net/hubfs/iStock-955988522.jpg --- [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) [Online Banking Login](https://banking.rmcu.net/auth/signin) [Online Banking Login](https://banking.rmcu.net/auth/signin) [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) - - [Home Loans](https://rmcu.net/home-loans) - [Personal](https://rmcu.net/personal) - [Business](https://rmcu.net/business) - [Membership](https://rmcu.net/membership) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Contact Us](https://rmcu.net/contact-us) - Search - [Financial Education ▾](https://rmcu.net/blog/what-is-an-operating-line-of-credit-for-business#financial-education-nav) - [About RMCU ▾](https://rmcu.net/blog/what-is-an-operating-line-of-credit-for-business#about-rmcu-nav) - [Security](https://rmcu.net/membership/security) - [TruStage: Security Alert](https://rmcu.net/trustage-security-alert) - [Money Mastermind](https://rmcu.net/money-mastermind-lessons) - [Financial Counseling](https://rmcu.net/financial-counseling) - [Savvy Money](https://rmcu.net/membership/financial-education/savvy-money) - [Blog](https://rmcu.net/blog) - [Resources](https://rmcu.net/resources) - [RMCU Team](https://rmcu.net/membership/about-rmcu/rmcu-team) - [Member Information](https://rmcu.net/membership/about-rmcu/member-information) - [Annual Meeting](https://rmcu.net/membership/about-rmcu/annual-meeting) - [Community](https://rmcu.net/membership/about-rmcu/community) - [Our History](https://rmcu.net/membership/about-rmcu/history) [back to blog](https://rmcu.net/blog) [In The Community](https://rmcu.net/blog/topic/in-the-community) # What the Heck is an Operating Line of Credit for Your Business? Read Time **3 mins** | Written by: Kelly Fleiner [mailto:?subject=What%20the%20Heck%20is%20an%20Operating%20Line%20of%20Credit%20for%20Your%20Business%3F&body=https%3A%2F%2Frmcu.net%2Fblog%2Fwhat-is-an-operating-line-of-credit-for-business](mailto:?subject=What%20the%20Heck%20is%20an%20Operating%20Line%20of%20Credit%20for%20Your%20Business%3F&body=https%3A%2F%2Frmcu.net%2Fblog%2Fwhat-is-an-operating-line-of-credit-for-business) Small businesses need capital to survive especially when the economy changes. A good source of capital for cash flow in your business is an operating line of credit. An operating line of credit can help you fund daily operations in your business even when cash is a little tight. Our AVP of Commercial Lending, Alan DeWit has put together a shortlist on the benefits of an operating line of credit. ### Fast Access to the Money you Need This can be crucial for a small business. Let's say you are running a little short on payroll this month but expect a big payment from a client in the near future. An operating line can get you the cash you need to pay your employees quickly. Or, in the case that something breaks and you were not planning on the expense, an operating line can get you the cash you need, when you need it. ### It is Easy to Transfer Money While focused on the costs associated with operating your business, these type of accounts are functional lines of credit. They are usually revolving and you can draw on them at any time so it is easy to transfer the cash from your line of credit to your business checking account. It is also easy to make payments to your operating line from your business checking account. Convenience is key for a small business owner ### Flexible Payments Since an operating line is a line of credit, your payment can be more flexible than a regular loan payment. Depending on how much you draw from your operating line, your payment is reflected. The more you take the larger your payment will be, but the less you take, you guessed it; the smaller your payment will be. It is a pretty cool and a great tool for the small business owner.   ### Helping With Cash Flow During Slower Months Every business owners worst nightmare is their slow season. How do you keep employees and the lights on when you’re not bringing in enough money? You use your operating line of credit and pay it back when the business is doing really well. Flexibility is key when operating a business and your line of credit can be the key to a successful business. ### You Only Pay for What You Use Another unique property of an operating line is that you may have a ton available, but you only need to use some of it. So you only pay for what you use, not the entire available amount. It makes those payments flexible and your cash flow intact, even when you borrow against it. ### Personal and Business Separation An operating line of credit is specific to your business. It is not for use for personal expenses. While personal accounts often have a balance of charges to expenses for business-related purchases, it is easier to keep the separation with this line of credit, making your accountant happy come tax time. Keeping this account separate and only for business expenses is key to keeping your liability in check.   This is just a short list of advantages of using an operating line of credit for your business. Along with these tools, RMCU has a number of other services that can help your business get to that next level. If this sparks your interest, contact our Business Services Team to get more information. Every business has needs that are specific to their stage, their industry, and their goals. An operating line of credit is a great tool to meet your needs and help make your business venture a success. Contact us to find out how RMCU can serve you, as you serve your customers.   ***If you enjoyed this blog, you might enjoy these other related blogs:***  - [4 Reasons to Invest in Commercial Real Estate](https://rmcu.net/blog/home-trends-what-is-really-worth-your-money-0) - [Credit Unions vs. Banks](https://rmcu.net/blog/credit-unions-vs.-banks) - [10 Tips for Small Business Owners in Montana](https://rmcu.net/blog/10-tips-for-small-business-owners-in-montana)      [mailto:kfleiner@rmcu.net](mailto:kfleiner@rmcu.net) ##### Kelly Fleiner Kelly Fleiner, CUBDP is the Vice President of Brand and Community Engagement at Rocky Mountain Credit Union, where she leads marketing, public relations, and community impact initiatives rooted in Montana values. A strategic storyteller and culture champion, Kelly blends data-driven insight with people-first leadership to strengthen brands, empower teams, and deepen community connections. She is passionate about elevating the credit union movement through bold ideas, meaningful partnerships, and authentic engagement. Share the Love [mailto:?subject=What%20the%20Heck%20is%20an%20Operating%20Line%20of%20Credit%20for%20Your%20Business%3F&body=https%3A%2F%2Frmcu.net%2Fblog%2Fwhat-is-an-operating-line-of-credit-for-business](mailto:?subject=What%20the%20Heck%20is%20an%20Operating%20Line%20of%20Credit%20for%20Your%20Business%3F&body=https%3A%2F%2Frmcu.net%2Fblog%2Fwhat-is-an-operating-line-of-credit-for-business) You May Like These ## Related Articles ![](https://rmcu.net/hs-fs/hubfs/iStock-869619568_c.jpg?width=700&name=iStock-869619568_c.jpg) In The Community ### [The Basics of Small Business Lending](https://rmcu.net/blog/small-business-lending-2019) Thinking about starting your own business or already own one and ready for your first business loan?... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/iStock-1003743872_c.jpg?width=700&name=iStock-1003743872_c.jpg) In The Community ### [Four Things You Will Need To Get A Business Loan](https://rmcu.net/blog/get-a-business-loan-2019) Many businesses use loans to facilitate their success. If you've ever wondered what you would need t... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/Campaigns/Old%20Blogs/RMCU_ICU_day.jpg?width=700&name=RMCU_ICU_day.jpg) In The Community ### [RMCU and The History of Credit Unions](https://rmcu.net/blog/rmcu-and-the-history-of-credit-unions) Rocky Mountain Credit Union began in the State Capitol Building in 1940. Since then, we have helped ... Keep Reading ## [**FOLLOW US ON INSTAGRAM**](https://www.instagram.com/rockymountaincu/?hl=en) - [Privacy Policy](https://rmcu.net/hubfs/DISCLOSURES%20(FILES)/Privacy_Notice.pdf) - [ADA Compliance](https://rmcu.net/ada-compliance) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Fee Schedule](https://rmcu.net/hubfs/DISCLOSURES%20(FILES)/RMCU_ScheduleOfCharges_Members_2024-DIGITAL-2.pdf) ![Equal Housing Leader](https://rmcu.net/hs-fs/hubfs/raw_assets/public/RMCU_2022/images/home-lender-logo.png?width=140&name=home-lender-logo.png "Equal Housing Leader") ![American Strategic Insurance](https://rmcu.net/hubfs/raw_assets/public/RMCU_2022/images/asi-logo.svg "placeholder_200x200") Each account is insured by American Share Insurance up to $250,000. By members' choice, this institution is not federally insured. [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) All share and loan accounts are subject to membership eligibility. Equal Housing Opportunity. **RMCU NMLS# 585490** © 2026 Rocky Mountain Credit Union All Rights Reserved × ## You Are Leaving Our Website You are leaving the Rocky Mountain Credit Union website and accessing a third-party website. The privacy, security, and accessibility policies of third-party websites may differ from those of Rocky Mountain Credit Union. We encourage you to review the policies of any website you visit. Rocky Mountain Credit Union is not responsible for the content, privacy, security, or availability of external websites and does not endorse or guarantee the products, services, or information they provide. Stay Here Continue ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Kelly Fleiner", "url" : "https://rmcu.net/blog/author/kelly-fleiner" }, "dateModified" : "2023-09-11T21:59:50.241Z", "datePublished" : "2019-05-08T14:00:00.000Z", "headline" : "What the Heck is an Operating Line of Credit for Your Business?", "image" : [ "https://rmcu.net/hubfs/iStock-955988522.jpg" ], "mainEntityOfPage" : { "@id" : "https://rmcu.net/blog/what-is-an-operating-line-of-credit-for-business", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://rmcu.net/hubfs/RMCU-logo.svg" }, "name" : "Rocky Mountain Credit Union" } } ```