Credit cards, credit score and banks
You can repay the loan, or a portion of it, and draw the funds down again at any time as long as the amount does not exceed the limit of the working capital loan.
Some credit cards companies will provide an interest free period, but you have fewer options at the end of the free interest period. Your credit score may be lower, below 680 and the banks may no longer have an interest. Additionally banks do not like to repay third party debt, but they will require that the credit card debt is reduced when they consider a working capital loan. You cannot have it both ways.
Here is the rub.
So many accountants advise their clients to avoid income taxes by increasing shareholder distribution. This may leave the company with little or no residual net income at year end. There are inadequate funds available to service debt . Therefore the bank has no interest in providing funding for what may be a company ready for growth.
My advice to all entrepreneurs is, if you intend to seek a loan from a bank, show a profit. Discuss this with an advisor and your accountant.