For when the business is too young to borrow but the house isn’t.
It sits in second position behind your mortgage. Your first-mortgage rate is untouched, which is the entire point.
- Amount
- $25,000 – $750,000
- Term
- 10–30 years
- Speed
- Often 5–10 business days
- Cost to apply
- $0
What it is
A business-purpose home equity line of credit takes second position behind your existing mortgage. It isn’t a refinance. You draw what you need, repay, and draw again, and the rate on your first mortgage never comes up.
Because real property secures it, this prices below anything underwritten on the business alone. It reads your equity and your credit rather than your deposits, which is why a two-year-old business with a ten-year-old house often qualifies here and nowhere else.
When it fits
- You own a home with real equity. And you would rather not disturb a mortgage rate you’ll never see again.
- The business is young. Trading history is thin, but your personal balance sheet isn’t.
- The need recurs. A line suits a rolling requirement better than a lump sum does.
- You want the cheapest option available to you. On this page, secured by a house, that’s this.
What it is not good for
- Your home secures it. That’s why it’s cheap, and it’s the whole reason to be careful. If the business can’t pay, the house is the collateral.
- It’s slower than an unsecured line. Valuation and title take days that a signature doesn’t.
- Availability varies. By state, by property type, and by how much equity is genuinely free.
The part most sites leave out
Questions we get on this one
Is this a refinance?
Is this the same as a home equity loan?
What credit score do I need?
What does it cost me up front?
How much can I draw?
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.