Business Line of Credit

What is a business line of credit?

Think of a business line of credit as a revolving loan that allows the business owner to access a specific amount of capital at any time to help with short-term business financing needs. This type of funding option is useful since you have ongoing access to funds to deploy when needed. You can also typically pay back your credit line anytime without incurring any early repayment fees however that is dependent on the lender.

Top 5 Benefits

Payback credit line anytime
No payment guidelines
Offers increased line of credit
Stabilizes cash flow
Revolving line of credit

Business Line of Credit Requirements

Time in business 3 months (Minimum)

Monthly Revenue $5k (Minimum)

Business Bank Account (Required)

No Minimum Credit Score Required

Basic points to consider when applying for a business line of credit

For financially established businesses, a business line of credit is a viable option. However, being a small business means facing more stringent guidelines such as credit criteria, an extensive application process, and being required to provide financial documentation that small businesses might not be able to obtain. The main points to consider include:

Access: You have ongoing access to funds to deploy when needed.
Flexibility: You can pay back your credit line anytime as opposed to a traditional term loan.
Usage: This option allows you to use funds how you see fit such as inventory, equipment, or operating expenses.