Business Line of Credit
Get flexible access to capital with a business line of credit. Draw funds as needed, pay interest only on what you use, and have funds available for opportunities.
What is a Business Line of Credit?
A business line of credit is a flexible financing option that gives you access to a predetermined amount of capital that you can draw from as needed. Think of it as a credit card for your business, but with much higher limits and lower rates.
You only pay interest on the amount you actually use, and as you repay borrowed funds, they become available again. This makes it perfect for managing cash flow fluctuations and seizing business opportunities.
Key Benefits
Perfect For These Business Needs
Cash Flow Management
Bridge gaps between receivables and payables, handle seasonal fluctuations
Inventory Purchases
Stock up on inventory for seasonal demand or bulk purchase opportunities
Business Opportunities
Quickly access funds for unexpected opportunities or urgent needs
Equipment & Repairs
Cover unexpected equipment repairs or purchase new equipment
Marketing & Growth
Fund marketing campaigns, trade shows, or expansion initiatives
Emergency Fund
Have a safety net for unexpected expenses or business emergencies
How a Line of Credit Works
1. Get Approved
Apply and get approved for a credit limit based on your business financials and creditworthiness.
2. Draw Funds
Access funds up to your credit limit through online banking, checks, or wire transfers as needed.
3. Pay Interest
Pay interest only on the amount you've borrowed, not on your entire credit limit.
4. Repay & Reuse
As you repay borrowed amounts, they become available again for future use.
Typical Terms
Types of Business Lines of Credit
Secured Line of Credit
Backed by collateral like real estate or equipment. Lower rates but requires assets.
Unsecured Line of Credit
No collateral required. Higher rates but easier to qualify for.
Revolving Line of Credit
Most common type. Credit limit replenishes as you repay borrowed amounts.
Non-Revolving Line
Credit limit doesn't replenish. Must be repaid in full before borrowing again.
Commercial Line of Credit
Specifically for business purposes with higher limits and business-focused terms.
Emergency Line of Credit
Quick access for emergency situations with simplified approval process.
Line of Credit Requirements
Credit Score
Generally 680+ for traditional lenders, 600+ for alternative lenders
Time in Business
Often 1+ years, though some lenders work with newer businesses
Annual Revenue
Minimum $50K-$100K annual revenue for most lenders
Collateral
May be required for larger credit limits or better rates
Line of Credit Requirements
Line of credit requirements vary by lender and credit limit size. Generally, lenders look for businesses with good credit, consistent revenue, and a track record of responsible financial management.
Secured lines of credit typically have lower requirements since they're backed by collateral, while unsecured lines may require stronger financials and higher credit scores.
Ready to Get a Line of Credit?
Get flexible access to capital with a business line of credit. Connect with lenders and have funds available when you need them.