A business credit line provides flexible access to funds up to a predetermined limit, allowing companies to borrow as needed.

How a Business Credit Line Works

• You’re approved for a maximum credit limit.
• You can draw funds as needed, up to the limit.
• You only pay interest on the amount you’ve borrowed.
• As you repay, the available credit is replenished.

Benefits of a Business Credit Line

• Flexibility to manage cash flow
• Only pay interest on what you use
• Can help build business credit
• Useful for unexpected expenses or opportunities

Types of Business Credit Lines

1. Secured Lines: Backed by collateral, often offering lower interest rates.
2. Unsecured Lines: No collateral required, but may have higher interest rates.
3. Revolving Lines: Ongoing access to funds as you repay.

How to Qualify for a Business Credit Line

• Strong credit score (business and personal)
• Proven business revenue
• Time in business (typically at least 6 months to 2 years)
• Solid business plan

Alternatives to Traditional Business Credit Lines

• Online lenders
• Invoice financing
• Business credit cards.