You only pay for the part you actually draw.
The right instrument for a gap that keeps coming back, which is most of them. Set it up in a quiet month, not a loud one.
- Amount
- $10,000 – $250,000
- Term
- Revolving, 6–24 month draw
- Speed
- Often 1–5 business days
- Cost to apply
- $0
What it is
An approved limit you draw against at will. Interest accrues only on what’s outstanding, and the room comes back as you repay.
It suits recurring, unpredictable timing: a payroll that sometimes lands before a large receivable, a supplier who discounts for paying inside ten days, a season you can see coming but can’t date precisely.
When it fits
- The gap recurs. You have needed short-term capital more than once in the last twelve months.
- You want it in place first. Facilities are easier to open in a good month than a bad one.
- The amount varies. Some months you draw nothing and pay nothing.
- There are discounts to capture. Supplier terms and volume pricing often beat the cost of the draw.
What it is not good for
- Limits run lower than a term loan would for the same business.
- Some lines carry maintenance or draw fees whether or not you use them. We’ll point those out.
- Renewal isn’t automatic. The lender re-underwrites, and a weaker year can shrink the limit.
The part most sites leave out
Questions we get on this one
Do I pay anything if I never draw?
On most lines, no. Some carry a maintenance fee, and we’ll flag it before you sign rather than after.
How fast can I draw once it’s open?
Usually same or next business day, straight to your operating account.
Does the limit go up over time?
Often, on clean usage. Drawing and repaying on schedule is the fastest way to a larger limit.
Is it secured?
Frequently unsecured at smaller limits, with a general business lien above that.
Can I have this alongside a term loan?
Yes, and it’s a common structure: the loan funds the project, the line covers the timing around it.
Common in
- Restaurants & food service Thin margins, daily receipts, and equipment that fails at the worst possible moment.
- Trucking & logistics Fuel and drivers are paid now. Brokers pay in thirty to sixty days.
- Construction & contracting Materials up front, progress billing, retainage held to the end.
- Retail Inventory is bought months before the season that sells it.
Is this the right instrument for you?
That's the advisory question, and it needs your numbers rather than a web page. Send three to six months of statements and we'll tell you which structures your file actually supports.