Flexible, on-demand funding designed to support cash flow, growth, and everyday business operations.
Credit Limit$10,000 – $250,000
TermRevolving
InterestOn drawn balance only
Funding TimeOften same day after setup
Min Credit Score600
Overview
A business line of credit gives you flexible, on-demand access to capital. You draw only what you need, repay it, and reuse the funds — paying interest only on the balance you carry rather than the full credit limit.
Most lenders expect line of credit funds to be used for short-term needs like managing cash flow, covering payroll, purchasing inventory, handling emergency repairs, or bridging seasonal slowdowns. As you repay what you've borrowed, your available credit is replenished without submitting a new application.
A line of credit is the small-business equivalent of a backup generator — you hope you don't need it, but the day you do, the cost of not having it is enormous. Setting up a line when business is healthy (and credit looks its best) is meaningfully easier than scrambling for emergency capital during a downturn. Most lenders will not approve a fresh line while a business is actively bleeding cash.
Pricing on a revolving business line of credit usually shows up as an APR on the drawn balance plus a small draw fee on each advance. Typical APRs range from prime + 3% to the mid-20s depending on lender, credit profile, and revenue. Many lines have no annual fee and no inactivity fee — meaning you can keep one open as standby capital at zero cost. Rates and terms vary by lender and borrower profile.
A common archetype: a $2M-revenue distributor uses a $100,000 line to pre-pay an overseas supplier for a discounted bulk inventory order. The supplier discount more than covers the 30-day interest charge, and the line is paid back as the inventory sells through. That's the line of credit playbook — short-cycle, ROI-positive draws. Need a primer? See our FAQs or apply with assistance.
Benefits
Revolving Access
Once approved, draw, repay, and draw again up to your limit — no need to re-apply each time you need capital.
Pay Only For What You Use
Interest accrues only on the amount currently drawn. Leaving the line untouched costs nothing.
Same-Day Funding After Setup
Once your line is approved and set up, you can typically transfer funds to your business account quickly, often within the same day.
Who typically qualifies for a business line of credit
Credit score of 600+ (660+ unlocks larger limits and lower rates)
At least 6 months in business (12+ months for limits above $50,000)
Monthly revenue of $10,000+ with consistent deposit patterns
Business checking account with 3+ months of statements available
No open bankruptcies; no active tax liens above $10,000
Documentation: business bank statements, basic application, EIN, and ID
Personal guarantee from majority owners
How to open a business line of credit
Apply online
Quick application: business name, EIN, revenue, requested limit. Soft credit pull only — no impact to your score at this stage.
Connect bank statements
Securely connect your business bank or upload 3–6 months of statements. Lenders look at average daily balance and revenue consistency.
Receive your limit and rate
Within 24 hours you'll typically see your approved credit limit, rate, and draw terms. Compare offers side by side.
Sign and set up
E-sign the agreement and connect a funding account. Setup typically completes the same day.
Draw on demand
From your dashboard or by phone, request a draw — funds typically arrive same day or next business day. Make minimum payments and re-draw as needed.
What you can use a business line of credit for
Bridge seasonal slowdowns
Cover fixed costs during your slow quarter and pay the line down when revenue rebounds — without locking into a long-term loan.
Make payroll on time, every time
Smooth over the gap between client AR and the next Friday payroll without dipping into operating reserves.
Take supplier discounts
Pay vendors early for 1–3% discounts. A 30-day draw at 18% APR still nets you positive ROI on a 2% supplier discount.
Cover emergency repairs
When the HVAC, the truck, or the POS system goes down, you draw, repair, and move on — no application, no waiting.
Stock up for peak season
Pre-buy inventory ahead of Q4 or your busy season, then pay the line down as the inventory sells through.
Standby liquidity
Keep an open line as cheap insurance. If you never draw, most lines cost $0 per year — making it the cheapest form of emergency capital you can hold.
How a line of credit compares
vs Business Term Loan
Line for recurring, term loan for one-time
A term loan is a single lump sum with fixed payments — best when you know exactly what you'll spend. A line is for unpredictable, repeated capital needs. Learn more
vs Working Capital
Line is cheaper for recurring users
Working capital advances cost more per dollar but fund in 24 hours from a cold start. If you'll need cash more than once a quarter, set up a line first. Learn more
vs Business Credit Card
Line of credit beats cards over $10,000
Cards have rich rewards on smaller spend but APRs spike to 24–29% on revolving balances and limits are usually capped. A line of credit scales to $250K with lower carrying costs. Learn more
Ready to apply for Business Line of Credit?
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Disclaimer: The above information is provided as a guideline. Some loan conditions may fall outside of these parameters. We recommend that you speak with one of our advisors before taking any course of action based on this information.
