The answer to this question will generally depend on your specific needs.
A loan will be issued for a set amount and therefore have an upper ceiling. You typically get a fixed interest rate and a specific monthly repayment so you can accurately account for the loan in your cash flow projections. This may be a good option if you have a large, one-off purchase to make, but do not envision any further needs.
A line of credit is more flexible. You can tap into this option as new obligations come along up to a pre-agreed limit. You may get a variable rate of interest, which could go up or down depending on fiscal policy. Lines of credit may have higher limits than business credit cards.
The business credit card is similar to a line of credit in many respects as it will have a pre-agreed limit, expected monthly payments, and given interest rates. These interest rates tend to be higher for a business credit card than for a line of credit. Remember, charge cards may be another option if you know that you can pay back the outstanding balance in full, as they effectively give you “free” interest for a given amount of time.
