If you're in business and you haven't already established a cash 'buffer', or if you're still working on creating a healthy cash flow, then you've probably already realized that credit lines for small businesses are a good idea.

What you might not realize is that sometimes, small business credit lines can be the crucial difference between continuing to trade, and financial disaster. Let's take a closer look at some of the ways, including those critical to production and profitability, which this funding option can help you with.

1. Establishing Your Credit Rating

There's a lot to be said for being a cash business, but there's only so long that you can do that. Eventually, every business needs credit for something, and establishing a good credit record now can help with that later on.

2. Boosting Your Sales

There's only one way to get more business - advertise and market more. If you are struggling to find the budget to boost your sales, then credit may be the solution you need to make promotional costs available.

3. Filling 'Gaps' Left by Late Payments

What many small business owners don't realize is that it's not revenue and profit that's the most important financial matter to their companies - its cash flow. One late payment can sink any small business - even if they're profitable on paper. Having credit available to bridge the gap is one way to prevent financial disaster.

4. Capital Investment

You've probably already identified at least one area of your business where investing in capital equipment could increase productivity and profitability. A credit line can help you to make that investment now, and boost your business's bottom line.

5. Critical Repairs

The other side of the capital equipment coin is maintaining the equipment you've already got. Murphy's Law nearly always applies when you're running a small business, and you'll probably find that your essential equipment will nearly always fail when it's most needed. Having credit available to make repairs is one way to ensure you can keep going.

6. Capacity Building

There's nothing worse for the small business owner than being offered a once in a lifetime contract, and having to turn it down because you lack the capacity to take it on. Small business lines of credit can give you the cash to expand quickly, hire help, and buy equipment and such, when you need it the most.

7. Material Financing

Laying out cash on materials for production is not always possible - and it's something that gives many a small business owner sleepless nights. Small business lines of credit give you the cash you need to buy the materials you need, without clearing out your bank account in the process.

8. Legal Fees and Processes

Whether it's collecting payments legally, registering a patent, or defending your business in court, legal fees are expensive. Having access to small business lines of credit allows you to access cash when you need it.

The truth is credit is almost always essential when you're building a business for whatever reason. Make sure that you can access it when you need it.