What is a business line of credit?

A business line of credit is a revolving credit facility that lets a business draw funds up to a set limit, repay them, and draw again — paying interest only on the outstanding balance.

Explanation

Lines of credit are ideal for working capital fluctuations: covering payroll between receivables, funding inventory, or bridging slow seasons.

Bank lines typically offer the best rates but require strong financials. Fintech lines (e.g. revenue-based) are easier to qualify for but cost more.

Examples

•Bank LOC: $25K–$500K, prime + margin
•Fintech LOC: faster approval, monthly factor rates
•SBA Express LOC: SBA-backed revolving facility

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