Business Line of Credit

A business line of credit gives access to a pool of funds to draw from when you need capital. Unlike a traditional business loan,
you have the flexibility to borrow up to a set amount (typically anywhere from $50,000 to $500,000), repaying only the amount you
withdraw, with interest. Draw on your small business line of credit to handle cash flow gaps, get more working capital, or address almost
any other emergency or opportunity.

A business line of credit gives access to a pool of funds to draw from when you need capital.
Unlike a traditional business loan, you have the flexibility to borrow up to a set amount
(typically anywhere from $50,000 to $500,000), repaying only the amount you withdraw,
with interest. Draw on your small business line of credit to handle cash flow gaps,
get more working capital, or address almost
any other emergency or opportunity.

Business Line
of Credit

A business line of credit gives access to a pool of funds to draw
from when you need capital. Unlike a traditional business loan,
you have the flexibility to borrow up to a set amount (typically anywhere
from $50,000 to $500,000), repaying only the amount you withdraw,
with interest. Draw on your small business line of credit to

Business Line of Credit vs. Credit Card:
What’s the Difference?

Although business lines of credit and business credit cards are both forms of “revolving” credit, there are a few
important differences you should be aware of:

Documents Required:

Credit cards usually have higher interest rates.

Credit cards charge additional fees for cash advances and, often, balance transfers.

Credit cards typically require payments on a monthly basis while business lines of credit usually don’t.

Lines of credit give you access to cash.

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Credit cards typically require payments on a monthly basis while business
lines of credit usually don’t.

Although business lines of credit and business
credit cards are both forms of “revolving” credit,
there are a few important differences you
should be aware of:

Business Line of
Credit vs. Credit Card:
What’s the Difference?

Credit cards typically require payments on a monthly
basis while business lines of credit usually don’t.

Credit cards charge additional fees for
cash advances and, often, balance transfers.

What sorts of businesses are eligible for this flexible financing?

Who Qualifies for Business Lines of Credit?

What sorts of businesses are eligible for this flexible financing?

Younger, less established businesses might be able to qualify for short-term lines of credit,
while medium-term lines of credit are more for businesses with good credit and a solid financial history.
The maximum amount of funding available, introductory duration of the credit line, and repayment terms
depend on your business’s revenues, credit rating, history, and other factors.

So what sets a business line of credit apart from a traditional term loan?

To start with, business lines of credit usually come with lower interest rates and closing costs
than traditional term loans of similar sizes. But on the other hand, if you’re late with a payment or go over
your credit limit, that interest rate could spike pretty high. Also, traditional term loans have regular interest
rates over the life of the loan, which is a major difference between term loans and business lines of credit.

Why do we split business lines of credit up into short-term and medium-term?

Although small business lines of credit don’t really have term lengths—you can withdraw and pay back those
funds indefinitely, as long as your lender believes that you’re a responsible borrower—these labels help you
compare short-term loans with short-term lines of credit and traditional term (or “medium-term”) loans with
medium-term lines of credit.

Who Qualifies for
Business Lines of Credit?

What sorts of businesses are
eligible for this flexible financing?