Business Lines of Credit: Flexible Funding for Cash Flow
A business line of credit gives you access to funds up to a limit. You draw what you need and generally pay interest and fees only on what you use. As you repay, availability may be restored, which makes it useful for managing uneven cash flow.
Common uses
- Smoothing seasonal cash flow
- Covering payroll or supplier payments between invoices
- Handling unexpected expenses
- Short-term opportunities
General qualification criteria
| Criteria | General expectation |
|---|---|
| Personal credit | Often 600–680 or higher, depending on the lender and line size |
| Time in business | Commonly 6 months to 2 years |
| Revenue | Minimum annual or monthly revenue set by the lender |
| Bank activity | Steady deposits and healthy account balances |
| Collateral | May be secured by business assets, or unsecured with a personal guarantee |
| Other | Lenders may review existing debt and may set or adjust limits over time |
These are general, commonly cited guidelines and not guarantees. Each provider sets its own requirements, and meeting them does not ensure approval.
What providers typically look for
- Time in business and annual revenue (minimums vary by lender)
- Personal and business credit profile
- Recent business bank statements and tax returns
- Business formation documents and ID
Requirements vary by provider.
Pros
- Pay interest only on what you draw
- Reusable as you repay
- Flexibility
Cons
- Draw, maintenance or annual fees may apply
- Variable rates are common
- Limits can be reduced or reviewed by the lender
Compare lenders
Offers SBA loans, term loans and business lines of credit. Compare terms and requirements.
View SmartBiz LoansBusiness funding provider. Submitting its form shares your contact information with the company.
View Big Think CapitalOffers term, SBA, equipment and credit line options. Compare terms and requirements.
View South End CapitalOffers business lines of credit. Compare terms and requirements.
View BlueVineAffiliate links: we may earn a commission if you apply or are approved, at no extra cost to you. Approval is not guaranteed. Review each provider’s terms and fees before accepting an offer.
Frequently asked questions
How is a line of credit different from a term loan?
A line is revolving: you borrow, repay and can borrow again within your limit. A term loan is a single lump sum with a fixed repayment schedule.
Are there fees besides interest?
Often. Ask about draw fees, maintenance fees, annual fees and any minimum usage requirements.
Is it secured?
Some are secured by business assets and some are unsecured. Terms differ by lender.
Other financing options
SBA Loans · Small Business Loans · Equipment Financing · Business Credit Cards
Epic Capital Solutions is not a lender, broker or issuer and does not make credit decisions. Information is general and not financial, legal or tax advice. Rates, fees and terms are set by providers and may change.