When you run a small business, timing is everything — and sometimes, payments don’t land when they’re supposed to. A few months ago, I had a supplier payment due and not enough in the account to cover it because a client wire was delayed. That’s when I finally looked into what an overdraft line of credit really is. I found a super clear breakdown of the overdraft line of credit meaning and realized I should’ve done it sooner. It’s basically a cushion that automatically covers you when your account dips into the red. I set it up with my bank, and now I’ve got peace of mind knowing I won’t miss payments or damage vendor relationships just because of one off-timing. I don’t rely on it constantly, but it’s helped twice already — and each time saved me from late fees and stress.
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