A business line of credit is a business loan that offers the flexibility to borrow up to a certain credit limit, usually between a range of $50,000 and $500,000, when capital is needed to cover short-term working capital needs. Thus, a pool of money is available for access when needed, such as for an emergency, to handle cash flow gaps, or to pursue a business opportunity. In addition, no interest is incurred and no payments are made until funds are actually used. After using a portion of the loan, and that amount is paid off, you are eligible to use the full amount of your line of credit again. While similar to credit cards, business lines of credit have lower interest rates and sometimes lack mandatory monthly payments.
Loan Details
Max. Loan Amount
$10K to $1M+
Loan Term
3 - 18 months
Interest Rates
7% - 25%
Speed of Funding
24 hours
Loan Requirements
Annual Revenue
$100,000+
Credit Score
600+
Time in Business
6+ months
Pros
- Interest only on funds borrowed
- Capital always available if needed
- Lines of credit are flexible---good for stabilizing cash flows
Cons
- More difficult to qualify for this loan
- Hard to increase credit limit --- not ideal for growing companies
- Lower borrowing limits and additional fees
1
Prequalify Online
Follow steps and enter basic information.
2
Online Approval
After online approval, a consultant will reach out to discuss loan options.
3
Recieve Secure Funding
Funds will be directly deposited into your bank account and available for immediate use.
Best Use of a Business Line of Credit
- Ongoing operating expenses
- Cash flow gaps
- Pursuing unexpected business opportunities
- Emergencies
- Covering seasonal shifts in revenue
- Larger purchases
Best Use of a Business Line of Credit
- Ongoing operating expenses
- Cash flow gaps
- Pursuing unexpected business opportunities
- Emergencies
- Covering seasonal shifts in revenue
- Larger purchases