Basic: U.S. business entity, time in business (often 6–24 months), sufficient revenue/cash flow, and acceptable credit.

Most lenders set thresholds; stronger scores can unlock better rates/limits. Some lenders underwrite primarily on business performance.

Often yes, especially for small businesses. Some asset-based lines may limit or waive PGs.

Usually yes—business and sometimes personal credit. Pre-qualification may use a soft pull; funding generally involves a hard pull.

Secured lines may be collateralized by receivables, inventory, or a blanket lien. Unsecured lines rely on cash flow and credit.

High-risk industries may face tighter limits or ineligibility, depending on lender policy.

Yes. Requirements may include business bank statements and proof of operating history.

Some lenders fund nonprofits; underwriting criteria differ.

Business ID docs, bank statements (3–12 months), tax returns (sometimes), financials (P&L, balance sheet), debt schedule, and ownership info.

Not usually for standard working-capital lines; may be requested for startups or larger limits.

For bigger lines or renewals, yes—recent P&L, balance sheet, AR/AP aging.

To verify cash flow, deposits, seasonality, and average balances.

A public notice of a lender’s security interest in business assets—common with secured lines.

Based on business performance, time in business, credit, collateral, and market conditions.

Possible fees include origination, draw/transaction fees, annual/maintenance fees, late/NSF fees, wire/ACH fees, and inactivity fees (varies by lender).

APR includes interest plus certain fees expressed annually; simple rate is the base percentage cost of borrowed funds.

Many lines have no prepayment penalty for principal; check your agreement for exceptions.

Some lenders charge a small maintenance or commitment fee; many do not.

Often variable (indexed to Prime/SOFR plus a margin). Some lines use fixed pricing for a draw period.

Underwriting weighs revenue, average bank balances, profitability, leverage, and industry volatility.

Yes—usually after consistent usage, timely payments, and improved financials.

The time frame during which you can take advances. Revolving lines often renew annually.

When the line expires or comes up for renewal review.

Some lenders set a minimum (e.g., $500 or $1,000). Others allow small, flexible draws.

Typically via dashboard, ACH transfer to your business bank, or linked checking “sweep.”

ACH often 1–2 business days; wires can be same-day (fees may apply). Timelines vary by bank/lender.

Yes, many lenders allow automated sweeps or overdraft protection.

Yes—draw to your bank, pay by ACH/wire/check; some platforms offer bill pay.

You’ll make periodic payments (weekly/biweekly/monthly). Interest accrues on outstanding principal; payments reduce the balance and free up credit.

Usually yes—this reduces interest.

Depends on the product. Some offer interest-only periods followed by amortization; others amortize from day one.

Often yes, via ACH.

Policies vary; late fees and interest may apply.

Ranges from same day to several business days depending on lender, limit size, and documentation.

High debt loads or stacked advances can reduce limit or lead to a decline.

Possibly—to verify balances, statements, or financials (with your permission).

Evaluating revenues, margins, and bank activity to size a sustainable limit.

A lien covering most business assets (inventory, receivables, equipment) as security for the line.

Your lender may request subordination or offer a junior-lien position; outcome depends on the existing creditor.

You may seek asset-based alternatives or provide additional collateral; expect tighter limits/rates.

For asset-based lines, lenders may review AR aging, inventory reports, or order third-party appraisals.

Yes—common use case for timing gaps.

Yes—especially when you expect quick turnover.

Often yes, if permitted by your agreement; may be part of a debt-consolidation plan.

You can, but an equipment loan/lease might be cheaper for long-life assets.

Some do, but consider penalties/interest alternatives; discuss with your CPA.

Late fees may apply; repeated misses can trigger default, rate increases, or a freeze on the line.

Yes—if financials deteriorate, covenants are breached, or risk rises.

Larger lines may include tests (e.g., minimum liquidity, DSCR, leverage ratios).

Periodic bank-data access, updated financials, and annual renewals are common.

Non-payment, covenant breach, misrepresentation, bankruptcy, or cross-default with other loans—see your agreement.

Many lenders report to business bureaus; some may also report to consumer bureaus when PGs are involved.

Pre-qual may be a soft pull; final approval typically involves a hard pull that can affect credit.

Yes—responsible usage and on-time payments can help.

Lines usually allow larger limits and lower rates; cards offer rewards and convenience for smaller spends.

Lines suit short-term, repeat needs; term loans fit one-time, long-term investments.

Lines generally have lower overall cost and more flexibility; MCAs are faster but often pricier and repaid as a portion of daily sales.

Invoice financing advances against specific receivables; a line gives general-purpose capacity.

SBA lines (e.g., CAPLines) may offer attractive rates but involve more paperwork and time to close.

A one-time fee to set up the facility.

A fee applied when you take an advance; not all lenders charge this.

Periodic fees to keep the line open.

Sometimes—if you rarely use the line.

A fee for closing a line before the agreement term ends.

Fees if an ACH payment fails due to insufficient funds.

Commonly every 12 months, subject to review.

The lender reassesses performance, usage, and financials; your rate/limit may change.

Yes—consistent performance can qualify you for better terms.

Record draws as liabilities and interest as an expense; consult your accountant for GAAP/Tax specifics.

Generally, business interest may be deductible—confirm with your CPA.

Sometimes—for verifications or clarifications on financials.

Secure, read-only connections through trusted bank-data providers; you can revoke access at any time.

Encryption in transit/at rest, role-based access, and compliance with relevant standards (varies by lender).

Lender privacy policies govern data usage—review them before signing.

Yes—most lenders require signatures above a certain ownership threshold (e.g., 20%+).

Often, yes—admin roles can request draws or view statements.

Many platforms sync with QuickBooks/Xero for statements and reconciliation.

Typically you can schedule payments; recurring draws depend on platform features.

Yes—set user permissions in your portal.

Lines are common tools for seasonal ramp-ups—limit sizing may reference your peak months.

Some lenders consider pending contracts/POs for limit increases.

You can draw in USD and pay overseas via your bank; FX costs apply.

Acceptable to many lenders; documentation standards may be higher.

Expect more frequent reviews and potential limit adjustments.

Yes—active registration and no major legal issues help.

A clause where default on another loan triggers default here as well.

Possible, but lenders may restrict stacking due to risk.

A contract that sets priority between lenders’ liens.

Some funding products do; many lenders avoid COJs—review your documents carefully.

Your contract specifies governing law and dispute resolution venue.

Contact your lender early; they may adjust limits, restructure, or offer guidance.

Reconnect your new account in the portal and confirm ACH details.

Provide updated financials/AR aging; some lenders can expedite reviews.

Some lenders offer “term-out” options—ask before you need it.

Pay off the balance, satisfy any notice period/fees, and request UCC termination if applicable.

Draw only what you need for short-term uses to minimize interest.

Maintain strong cash flow, keep balances low, pay early when possible, and update financials to qualify for better terms.

Many businesses keep a secondary facility as a contingency—watch for stacking restrictions.

Revenue trends, average daily balance, NSF history, debt service coverage, leverage, AR turns, and concentration risk.

Recent bankruptcies, tax liens, repeated NSFs, undisclosed debt, sharp revenue declines.