Business Line of Credit
Here’s how it works!
Minimum qualifications
- 600+ FICO
- 6+ months in business
- $100,000 in annual revenue
A small business line of credit is a financial tool that has much in common with a business credit card. Unlike a term loan, a small business line of credit does not provide a lump sum of cash that requires a monthly repayment schedule. Instead, it offers the borrower access to capital up to a certain amount. Similar to using a business credit card, you can access the capital as you need it to pay for business expenses. The balance on a line of credit is “revolving,” meaning that you can carry the balance from month to month and interest is calculated based on the amount you draw. As you repay that amount (called the “principal”), your available credit goes back up to your limit, allowing you to replenish your credit and use it again.
If you own a small business, you probably already know that sometimes you need a little extra cash. Even the most successful small businesses experience slow sales, late invoice payments, urgent unplanned expenses, and other short-term situations where cash flow is uncertain. In situations like these, access to some extra working capital can mean the difference between closing your business or surviving the tough times and coming out on top.
When considering financing, small business owners have an overwhelming array of different options available to them. A business line of credit is one of the most popular choices for small business owners. No fees to open or maintain your line. No prepayment fees, monthly maintenance fees, or account closure fees.