Business line of credit
Capital on standby. You pay for what you draw, not for what is available.
| Typical amount | Speed | Typical term | Secured by |
|---|---|---|---|
| $10,000 – $250,000 | Often 1–5 business days | Revolving, 6–24 month draw | Often unsecured |
What business line of credit actually is
A line of credit is an approved limit you can draw against at will. Interest accrues only on the outstanding balance, and as you repay, the room becomes available again.
It is the right instrument for recurring, unpredictable timing gaps: a payroll that occasionally lands before a large receivable, or a supplier who offers a discount for paying early.
When it fits
- The gap recurs. You have needed short-term cash more than once this year.
- You want the facility in place before you need it, not while you need it.
- Amounts vary. Some months you draw nothing.
- You can capture supplier discounts or volume pricing by paying quickly.
When to think twice
- Limits are usually lower than a term loan for the same business.
- Some lines carry a maintenance or draw fee whether or not you use them, so read for that.
- Renewal is not automatic; the funder re-underwrites.
The honest version
Common in
- Restaurants & food service Thin margins, daily receipts, and equipment that fails at the worst possible moment.
- Construction & contracting Materials up front, progress billing, retainage held to the end.
- Retail Inventory is bought months before the season that sells it.
- Medical & dental practices Insurance reimbursement is slow, and the equipment is expensive.
See what you qualify for
Four minutes, a soft credit check, and a real answer, including when a different instrument suits you better.