A Business Line of Credit (LOC) gives your company a revolving pool of funds you can draw, repay, and draw again—ideal for payroll, inventory buys, marketing pushes, or timing gaps when receivables take 30–90 days to arrive. Typical limits range from $10,000–$500,000+ depending on revenue, time in business, credit, and collateral. Once approved, funds can land same-day to within a few business days; you pay interest only on what you use, with weekly or monthly payments on the drawn balance. As you repay, your available credit replenishes. Most programs include an annual review to refresh limits and pricing as you grow.

A LOC shines when you need flexibility: it’s usually cheaper than short-notice cash advances and more versatile than a credit card because it can send cash directly to your bank for expenses that don’t accept cards. Compared with a term loan (fixed amount, fixed schedule), an LOC avoids over-borrowing—take exactly what you need, when you need it. That said, larger facilities may require collateral or a personal guarantee, and very new or lower-credit businesses may see higher pricing or smaller limits. Misusing a line—maxing it out for long periods—can strain cash flow.

Most US-based LLCs, corporations, and sole props with consistent monthly revenue qualify. Lenders generally review both business and personal credit, a business bank account, and time in business (often 3–12+ months minimum, program-dependent). To apply, you’ll typically provide a government ID, a voided business check, the last 3–6 months of business bank statements, and basic financials (P&L, balance sheet) for higher limits. If your cash needs relate to customers paying later, invoices or contracts help underwrite the right limit.

Pricing is transparent: you’ll see an interest rate or draw fee and only pay for the amount you use. Prepayment is usually allowed, which can lower your total cost. For the right fit: use a line to bridge short-term gaps or fund inventory that turns quickly; schedule periodic check-ins to right-size your limit; and pair it with tighter receivables management so draws don’t become permanent.

⇒ Pros: interest only on what you draw; fast access; reusable credit that scales with repayment; powerful for smoothing cash flow.

⇒ Cons: may require a personal guarantee or collateral; limits are smaller than large term loans/ABLs; pricing can rise for newer or riskier profiles; and carrying a maxed-out balance defeats the flexibility benefit.

Ready to explore options? Share your monthly revenue, time in business, and average margins, and we’ll tailor LOC programs for your profile—so you get a flexible safety net without over-borrowing. Apply for a business line of credit now!