What is a Business Line of Credit?

Our business Line of Credit is a flexible business loan that allows you to borrow up to a certain amount. You might regard it as a credit limit, to cover your short-term working capital requirements. Unlike a term loan, you only pay interest on the amount you actually use.

For example, if you have a credit limit of $150,000 but only use $40,000, then you only have to pay interest on the $40,000 that you draw. Once the amount has been repaid ($40,000), then you can draw additional funds up to the amount of your credit limit ($150,000).

At and our Top Lenders and Top Accredited Investors we have various types of business Lines of Credit for you, each with its own benefit. We have listed them for you below:

  • Secured business lines of credit,
  • Unsecured business lines of credit,
  • Real estate lines of credit, and
  • Business credit cards. and our Top Lenders and Top Accredited Investors provides access to both secured and unsecured business Lines of Credit with a maximum credit limit of $250,000.

Line of Credit vs. Term Loan

The main difference between our Term Loan and a Line of Credit is how you receive the money and the repayment terms. Our Term Loans provide a specific sum of money that is repaid over a fixed period of time, otherwise known as the Loan Term. and our Top Lenders and Top Accredited Investors Line of Credits on the other hand provide a revolving account that allows borrowers to draw up to a certain amount, repay the amount borrowed, and redraw up to the amount of the credit limit to receive additional funds. Unlike keeping up with the fixed payments of a term loan, you will be required to pay interest on borrowed balance while the Credit Line remains open.

In many cases Line of Credit, you as the borrower are required to pay a minimum amount each month to avoid additional fees or penalties. Some lines of credit are open-ended meaning that the line does not close after a certain period of time as it does with a term loan, whereas others may close or become inactive after a certain amount of time or period of inactivity.

Is a Line of Credit Right for My Business?

As a business owner, there are often times when working capital is tight. Without ample liquidity to cover your business expenses like payroll, inventory, rent, and utilities it can be difficult to maintain your operations.

As one of the most flexible financing options, lines of credit are great for ensuring that you have the necessary working capital to keep your business running and that you have access to emergency funds if needed.

For your business, a line of credit is the go-to solution for stabilizing your cash flows as you can secure access to funds and then draw at a later time when your additional working capital is needed. It’s also a great option for you since you need to remain adaptable.

After all, you as a business owner often have a limited window of time to seize the opportunity when it arises and a Line of Credit allows you to quickly access the funding you need to pursue the initiative.

And because you only pay for what you use, lines of credit are also great emergency funds. That said, a line of credit would not be the right option in certain scenarios, such as trying to grow your business as the total cost of capital is typically lower with a term loan.

How to Get Line of Credit Financing

Pre-qualify Online

To get prequalified, follow our  “Get Started” button and enter some basic business information.

Approval Status

After your submission has been processed, our Business Consultant will reach out with the status and timeframe for approval.

Receive Line of Credit Funding

Upon approval and your acceptance of the offer, funds are deposited directly into your bank account so you can use the money immediately.