How it works

With a business line of credit, think of it like a pool of money you can dip into when needed, up to a set limit each year. Just like a credit card, you only pay for what you use. It's perfect for smoothing out cash flow bumps or handling unexpected expenses while waiting for more cash. Unlike fixed monthly payments of term loans, you may only have minimal payments each month. Getting a business credit line is often less challenging than other business loans, and it can be with or without collateral. Don’t use it for major, long-term costs since interest and penalties can add up fast if you don’t pay it back quickly.

Who suits business line of credit

• Business seeking flexible borrowing option (You can pay off your balance and borrow again as often as you wish)

• Businesses that don't qualify for traditional loans due to low earnings and low credit score

• Businesses with earnings history but not enough

• Businesses looking to build business credit

Key features:

• Amount from $5k to $500k

• Up to 24 months term (Up to 60 months with collateral)

• No collateral required