Business Line of Credit: Flexible Funding You Only Pay For When Used
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A business line of credit gives you a credit limit you can draw from as needed, paying interest only on what you use. Limits typically run $10,000 to $250,000 online (higher at banks), and a revolving line replenishes as you repay — making it the best product for recurring, unpredictable cash needs.
At a glance
| Typical amounts | $10,000 – $250,000 (online); higher at banks |
|---|---|
| Funding speed | 1–5 business days (online) |
| Best for | Recurring cash-flow smoothing, emergency buffer, taking supplier discounts opportunistically. |
Requirements
- 6–12+ months in business
- $10,000+ monthly revenue for online lenders
- Credit 600+ online; 680+ at banks
- Banks may require collateral for larger lines
How it works
- Approved for a limit; draw any amount up to it.
- Interest accrues only on outstanding balance.
- Repay on a schedule (often 6–12 month amortization per draw).
- Revolving lines free capacity back up as you repay.
Pros and cons
| Pros | Cons |
|---|---|
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See if you qualify for business line of credit
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Check Your Eligibility →Frequently Asked Questions
Line of credit vs term loan — which do I need?
A term loan fits a single defined expense; a line fits recurring or unpredictable needs. Many businesses eventually hold both.
Does an unused line cost anything?
Some lenders charge maintenance or inactivity fees — always check. Many online lines are free when unused.
Will draws affect my credit?
Business lines that report to business bureaus affect business credit; personal guarantees mean defaults can reach personal credit.
Related options
- Working Capital Loans — Covering payroll, inventory purchases, seasonal cash-flow gaps, and short-term opportunities.
- Merchant Cash Advance — Businesses with strong card sales that need money fast and have been declined for cheaper products.
- Equipment Financing — Trucks, construction machinery, restaurant/medical equipment, manufacturing lines, IT hardware.