How a line of credit works
Approval sets your limit. After that it behaves like a reservoir rather than a loan: you draw what you need, interest applies only to what you have actually taken, and paying it down makes the room available again without another application.
That mechanic is why a line is the standard answer to a timing problem. Payroll lands before a big invoice clears. A supplier offers a discount that expires Friday. A season needs stocking before it earns. None of those are reasons to borrow a fixed lump sum, and all of them are reasons to have a line already open.
It can be set up quickly, in as few as 48 hours. Even so, the better move is arranging one while cash flow is comfortable, because that is when your terms are strongest. A line you open in a crisis costs more than the same line opened in a calm month.
At a glance
- Amount
- $10K – $1M
- Funded in
- As few as 48 hours
- Term
- 6 months – 5 years
Common uses: Cash-flow gaps · Inventory buys · Emergencies
Ranges are typical for this product type and are not an offer of credit — your options depend on your business profile.
What businesses use credit lines for
Cash-flow gaps
Covering payroll, rent, and suppliers in the stretch between doing the work and getting paid for it.
Seasonal swings
Stocking and staffing ahead of the busy season, then paying the line back down out of the receipts.
The unplanned
A discounted inventory buy, a failed compressor, a job that needs money out the door before any comes in.
Where it's strong — and what to weigh
No product suits every business. If this one doesn't fit yours, an advisor will say so and point at what does.
Where it's strong
- Interest applies only to what you have drawn, not the limit
- Revolving. Repay and it is available again, no reapplying
- Ready before you need it, which is the whole point
- Setup in as few as 48 hours
Worth weighing
- Limits usually run smaller than a term loan for the same business
- A lender can reduce or freeze a line if the business weakens
- Easy access cuts both ways. A line works best with a rule attached
- Some lenders charge draw or maintenance fees. We lay those out
- 1+year in business
- We fund established businesses with consistent revenue.
- 50states
- Available to businesses across the United States.
- 48hours
- A real first answer, not an acknowledgement.
- 1advisor
- The same person from your first conversation through funding.
Business Lines of Credit: common questions
What business owners ask us most about it. See all questions.
What does revolving actually mean?
The limit is reusable. Draw $40,000, repay it, and the whole limit is available again. A term loan is one lump sum, and repeating it means applying again from scratch.
What does it cost when I am not using it?
Interest applies only to what you have drawn. Some lenders add maintenance or draw fees and that varies by offer, so your advisor goes through the complete fee schedule with you before you sign.
How large a line can my business get?
The lenders we work with set limits from $10,000 to $1 million. Revenue pattern matters most, because the line is sized against the cash flow that will repay it.
When is a line the wrong product?
For a large one-time purchase with a known price. That is term loan or SBA territory, where the amount and the term are matched to the investment instead of leaving a big balance parked on a revolving line.
Find out where your business stands.
Six quick questions, no effect on your credit, and a real answer from an advisor within 48 hours.
