Business Line of Credit
Revolving credit that’s there when you need it
$25K – $1MFunding Range
15–30 daysSpeed
Revolving credit that’s there when you need it
A business line of credit gives you access to a pre-approved pool of funds that you can draw from whenever your business needs capital. Unlike a term loan where you receive a lump sum, a line of credit lets you borrow only what you need, when you need it — and you only pay interest on what you draw. It’s the most flexible form of business financing and ideal for companies that experience seasonal fluctuations, need to bridge invoice gaps, or want a financial safety net for unexpected opportunities or expenses.
Draw funds as needed and only pay interest on the amount outstanding. Repay and redraw as your business requires.
As you repay your draws, the credit becomes available again. Think of it as a business credit card with much better rates and higher limits.
Having an open line of credit means your business is prepared for unexpected expenses, opportunities, or cash flow gaps without scrambling for funding.
Manage seasonal cash flow, Bridge gaps between invoices, Emergency business expenses, Take advantage of bulk discounts, and Fund short-term projects.
Don’t meet every requirement? Apply anyway — we evaluate the full picture.
Submit a simple application. We’ll review your revenue and credit profile and match you with the best line of credit options.
Once approved, your credit line is established and ready to draw from whenever you need it.
Draw funds as needed, repay on a flexible schedule, and redraw as your balance is paid down.
A line of credit is revolving: you are approved for a limit, draw only what you need, and pay interest only on the outstanding balance. Repay it and the limit replenishes. That structure makes it the cheapest way to handle recurring, unpredictable gaps — you are not paying for capital that sits idle.
| Profile | APR range | Typical limit | Draw term |
|---|---|---|---|
| Bank line (700+ FICO, 3+ yrs, strong financials) | 8% – 14% | $100K – $1M | 12 – 24 months, renewable |
| Online lender (650+ FICO, 1+ yr) | 14% – 22% | $25K – $250K | 6 – 12 months, renewable |
| Revenue-based line (600+ FICO, 6+ months) | 22% – 35%+ | $25K – $100K | 6 – 12 months |
The costs that surprise people are not the interest rate. Watch for a draw fee (1–3% each time you pull funds), a maintenance or non-utilisation fee charged whether or not you use the line, and annual renewal fees. A 12% line with a 3% draw fee used monthly is not a 12% line. Ask for the all-in cost of a representative draw before signing.
These solve different problems, and choosing wrongly is expensive in both directions.
| Line of credit | Working capital advance | |
|---|---|---|
| You pay for | Only what you draw | The full amount, from day one |
| Reusable | Yes — replenishes as you repay | No — new application each time |
| Speed to fund | 1 – 7 days to open; instant thereafter | Hours to same day |
| Qualification bar | Higher | Lower |
| Best for | Recurring, unpredictable gaps | One known deadline, right now |
The decisive question is frequency. If you hit a cash gap three or four times a year, a line is dramatically cheaper than three or four separate advances — and the second draw costs nothing extra to arrange. If this is a single event and you need money tomorrow, a working capital advance funds faster than a line can be opened.
The strongest position is having a line open before you need it. Approval is easier when your financials are calm, and an undrawn line costs little to carry. Most businesses apply during the crisis, which is exactly when qualification is hardest.
Unsecured lines require no specific collateral but almost always carry a personal guarantee and a UCC-1 blanket lien on business assets. Limits are smaller, rates higher, approval faster.
Secured lines pledge specific collateral — most often accounts receivable or inventory — and price meaningfully better. If your balance sheet carries significant receivables, an asset-based line can reach limits an unsecured line never will.
Lenders typically size a line at 10–20% of annual revenue, adjusted for:
One structural trap: many revenue-based "lines" are not true revolving facilities. Read whether repayment genuinely replenishes available credit, or whether each draw is a separate fixed-payback advance wearing the label. Bay Street shops both structures across 50+ funding partners and will tell you which one you are actually being offered. For a fuller treatment, see our business line of credit guide.
A term loan gives you a lump sum that you repay on a fixed schedule. A line of credit gives you access to a pool of funds you can draw from as needed, and you only pay interest on the amount you’ve drawn. It’s more flexible for ongoing needs.
Business line of credit rates typically range from 8% to 22% APR, depending on your credit profile, revenue, and time in business. Well-qualified businesses often see rates in the single digits.
Some lenders charge a small draw fee (typically 1–2%) each time you access funds. We’ll make sure you understand all fees before you accept an offer.
Yes. There are no restrictions on how you use your line of credit funds. Use them for payroll, inventory, marketing, rent, or any other business purpose.
One application, no credit impact, and a dedicated specialist to walk you through your options. See what you qualify for in minutes.