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credit lines for business
 
A business line of credit 
provides a flexible, revolving source of capital, allowing you to draw funds as needed, up to a set limit. Unlike a traditional business loan, which provides a lump sum upfront, a line of credit allows you to pay interest only on the money you actually use. 
 
How a business line of credit works
  1. Approval for a credit limit: A lender, such as a bank or online lender, approves your business for a maximum borrowing amount, or credit limit, based on your business's financial health.
  2. Draw and repay: You can withdraw any amount of money at any time, up to your credit limit. As you repay the borrowed funds, the credit line is replenished, and you can draw from it again.
  3. Variable interest: The interest rate on a line of credit is often variable, meaning it can fluctuate over time.
  4. Repayment structure: Some lines of credit have specific draw periods, and others operate on a revolving basis, similar to a credit card. Repayment terms can range from a few months to several years. 
 
Types of business lines of credit
  • Secured: This type requires collateral, such as inventory or real estate, which you agree to forfeit if you fail to repay. Secured lines of credit often have lower interest rates and higher limits because they pose less risk to the lender.
  • Unsecured: An unsecured line of credit does not require collateral, but the business owner may need to sign a personal guarantee, making them personally responsible for the debt if the business defaults. Unsecured lines typically have higher interest rates due to the increased risk for lenders.
  • EIN-only: Some corporate credit card issuers allow you to use only your Employer Identification Number (EIN) to apply, which separates your personal finances from your business finances and protects your personal credit. 
 
Requirements for a business line of credit
Lender requirements vary, but you will generally need to provide: 
  • Strong credit history: Lenders will examine your personal and business credit scores.
  • Time in business: Many lenders require a business to be operating for at least six months to two years.
  • Consistent revenue: You must demonstrate a healthy cash flow and enough revenue to manage repayments.
  • Documentation: This includes business and personal tax returns, financial statements (profit and loss, balance sheet), and bank statements. 
 
Top business line of credit lenders (2025)
  • For bad/fair credit: Fundbox is an online lender that works with businesses with less-than-perfect credit and provides fast funding.
  • For fast approvals: OnDeck offers quick funding for qualifying businesses.
  • For existing bank customers: American Express and Chase offer lines of credit with unique benefits for existing customers.
  • For startups: Wells Fargo offers a Small Business Advantage line of credit, which is backed by the Small Business Administration (SBA) and is an option for companies with less than two years in business. 
A business line of credit is an excellent option for managing cash flow gaps, unexpected expenses, or funding ongoing operations. For large, specific, one-time investments, a traditional business term loan may be a better fit due to potentially lower, fixed interest rates. 
What kind of credit line is the best fit for your business? Are you a startup, or do you have an established business with a steady revenue stream? 

 

Credit lines can help expand, buy equipment and grow your idea in no time.

Starting a business or buying a new business, buying equipment, replace existing debt, franchise opportunities, etc. We can help even if your credit needs improvement with out credit boosting services. note. we are not a credit repair company. We help you get funded so you can change your life.