A business line of credit gives you a revolving limit of $10K to $500K you can draw, repay, and draw again, paying only on what you use. Approval can land the same week. Bank lines price around 8 to 25% APR; fintech draw-fee lines cost more, and the difference belongs in writing.
A line of credit is the standby cushion: it costs little or nothing sitting idle and is already approved when the slow month, the big order, or the surprise repair arrives.
The trap is fee structure. Bank lines charge interest on the drawn balance. Many fintech lines charge a fee per draw on a weekly schedule that can push the effective cost far above the sticker. We price both honestly and place you accordingly.
Term sheet
- Limits
- $10K to $500K
- Cost
- Interest on drawn balance, 8 to 25% APR at banks
- Structure
- Revolving, 6 to 24 month renewals
- Payments
- On what you draw only
- Time to approve
- Same week for most online lines
- Typical profile
- 600+ credit, 6+ months in business, steady deposits
a.The right fit
- Seasonal businesses bridging the quiet months
- Recurring inventory cycles that outrun cash on hand
- A payroll safety net you hope to never touch
- Owners who want approved capital waiting, not applied-for capital pending
b.Read before you sign
- Draw fees and monthly maintenance fees on fintech lines can double the effective cost. Read the fee schedule, or let us read it for you.
- Limits can be reduced if deposits dip. A line is a cushion, not a substitute for term capital.
- Do not carry long-term debt on a revolving line. If a balance never goes down, refinance it into a term loan.
c.How it funds
Qualify once
Statements plus a soft pull set your limit and pricing.
Draw when needed
Move funds to your account in one to two business days, often same day.
Repay and reuse
As you repay, the full limit becomes available again without reapplying.
d.Plain answers
Line of credit or working capital advance: which fits?
A line fits recurring, uneven needs because you pay only on what you draw. An advance fits one urgent lump sum when credit is thin. If you qualify for the line, it is almost always the cheaper standby.
Is a business line of credit better than a business credit card?
They complement each other. Lines fund payroll, inventory, and anything cards cannot pay, at limits cards rarely reach. Cards win on small purchases and rewards. Most owners eventually hold both.
What keeps my credit line healthy?
Steady deposits, occasional full paydowns, and staying well under the limit. Lenders review lines at renewal; a line that revolves cleanly tends to grow, one that sits maxed tends to shrink.