Which is more advantageous: a line of credit or a working capital loan? What is the difference between the two types of credit?

Both types of credit provide the necessary funds:

➤⠀current expenses;  

➤⠀refinancing other credits;

➤⠀payment of debts to the budget and suppliers;

➤⠀or the financing of stocks of goods and raw materials.

The difference is in the way it works:

➤⠀line of credit is linked to current accountand repayment is made from cash receipts on the current account. 

The credit limit is revolving: i.e. any amount used can be repaid and then used again and extended at maturity. 

➤⠀Another advantage of the credit line is that interest is calculated daily on the amount used only.

➤⠀credit for working capital is (usually) granted for one-off needs, covering an expense greater than the company's current receipts. 

From the outset, a repayment schedule will be established for the amount borrowed, either in equal monthly instalments or by mutual agreement. 📉