A business line of credit functions like a credit card for your company: you draw funds when needed, pay interest only on what you use, and replenish the line as you repay. It is ideal for managing seasonal cash flow, covering payroll between receivables, and unexpected expenses.
Secured vs. unsecured LOC
Unsecured lines rely on business revenue and creditworthiness—limits often $10,000–$250,000. Secured lines backed by inventory, receivables, or equipment may offer higher limits and lower rates.
Qualification factors
- Minimum 6–24 months in business (lender-dependent)
- Annual revenue thresholds ($50,000–$250,000+)
- Business and personal credit scores
- Bank statements showing cash flow patterns
LOC vs. term loan
Use a line of credit for short-term, recurring needs. Use a term loan for defined investments with predictable payback. We help you structure the right mix for your business stage.
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