A business line of credit is the most flexible funding a business can have. Instead of a one-time lump sum, you get a credit limit you can draw from whenever you need it — like a credit card for your business. You only pay interest on the amount you actually use, and as you repay, that credit becomes available again.
Why owners love a line of credit
- Pay only for what you use — no interest on the portion you don't touch.
- Reuse it — a true revolving line refreshes as you repay; no reapplying.
- Always ready — draw for payroll, inventory, or a surprise expense the day it hits.
- Smooth cash flow — bridge slow months and slow-paying customers.
- Flexible repayment — smaller payments during slower periods.
Best for ongoing or unpredictable needs. If you know exactly how much you need for a one-time purchase, a working capital loan may fit better. If your needs come and go, a line of credit wins.
How to qualify
| Requirement | Typical minimum |
|---|---|
| Time in business | 6+ months |
| Monthly revenue | $10,000+ in deposits |
| Credit score | Around 600 (options for all profiles) |
| Documents | 1-page application + bank statements |
Line of credit vs. term loan vs. working capital
A line of credit is a reusable limit you draw on as needed — best for recurring or unpredictable costs. A term loan is a fixed lump sum with set payments — best for a specific, planned purchase. Working capital is fast lump-sum cash for an immediate need. Many businesses keep a line of credit open and use working capital when a big opportunity hits.
Frequently asked questions
How does a business line of credit work?
You get a credit limit to draw from as needed, pay interest only on what you use, and reuse it as you repay — like a credit card for your business.
What do I need to qualify?
Roughly 6 months in business, $10,000+ monthly revenue, and around a 600 credit score, with options for all credit profiles.
Does checking affect my credit?
No — seeing your options uses a soft review only; a hard pull happens only if you move forward.