Not every cash need deserves a term loan.
A business line of credit gives you a standing pool of capital you can draw against at any time. Pay interest only on the outstanding balance, repay on your schedule, and the availability replenishes — making it the most flexible tool for uneven cash flow.
Business Lines of Credit at a glance
- Loan amounts
- $10,000 – $5,000,000
- Term length
- 12 – 24 month revolving, renewable
- Typical pricing
- Roughly 8% – 25% APR on drawn balances
- Funding speed
- 1 – 7 days to approval
- Credit guidance
- Typically 625+ FICO with 6+ months of revenue
Key Benefits
- Lines from $10K to $5M+
- Interest charged only on drawn funds
- Revolving — repay and reuse
- Draw funds in as little as one business day
Best Fit For
- Businesses with seasonal or lumpy revenue
- Owners who want a safety net in place before they need it
- Companies managing payroll between customer payments
- Contractors funding jobs before progress payments arrive
Why use a broker instead of going to your bank?
Line sizing and renewal terms vary hugely between banks, fintech lenders, and asset-based providers. We shop the structure so you get the largest usable line at a cost you'd actually draw on.
Learn more about working with a brokerHow business lines of credit compare
We broker every product on this list, so this comparison is about fit — not about steering you toward one option.
Compared with
Term working capital loan
A term loan gives you a lump sum and a fixed payoff schedule. A line of credit stays open, costs nothing when unused, and can be drawn repeatedly.
Compared with
Business credit card
Cards are convenient for small purchases but carry higher rates and cash-advance fees. A line of credit provides real cash at lower cost and much larger limits.
Compared with
Merchant cash advance
An MCA is a one-time purchase of future sales repaid daily. A line of credit is cheaper, revolving, and does not lock you into daily remittances.
Business Lines of Credit: frequently asked questions
How does a business line of credit work?
You are approved for a maximum limit and draw any amount up to it. Interest accrues only on the outstanding balance, and as you repay, the availability is restored for future draws.
What do I need to qualify for a business line of credit?
Most lenders want at least six months in business, roughly $10,000 a month in revenue, and a 625+ personal FICO. Bank lines require stronger financials; fintech lines are more lenient.
Is there a cost if I never draw on the line?
Many lines charge no interest when unused, though some banks add a small annual or unused-line fee. We flag those costs before you commit.
How is a line of credit different from a loan?
A loan is a one-time lump sum with fixed payments. A line of credit is reusable, funds on demand, and only costs money while a balance is outstanding.
Can I get an unsecured business line of credit?
Yes. Unsecured lines are common up to roughly $250,000 for businesses with solid revenue. Larger lines are usually secured by receivables, inventory, or a blanket UCC filing.
How quickly can I access funds after approval?
Once the line is open, draws typically hit your account the same or next business day.
More answers on the business financing FAQ and in the commercial lending glossary.
Other financing solutions
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses with flexible short-term capital.
Commercial Real Estate Loans
Purchase, refinance, or build commercial properties with structures matched to your project.
Bridge Loans
Move quickly on opportunities while you arrange long-term financing.
Ready to explore business lines of credit?
A 15-minute conversation is all it takes to know if this is the right fit. No obligation.