Business Lines of Credit
A business line of credit can provide access to funds up to an approved limit. Interest is generally based on the amount drawn, while maintenance, draw or other fees may also apply. A financing partner sets the limit, renewal, repayment and cost terms.
Quick Facts
Loan Amount
Partner-specific - Partner-specific
Rate / Cost
Varies
Funding Time
Varies
Term Length
Revolving
Key Benefits
- Interest is generally based on the amount drawn
- Approved limits vary by applicant and partner
- Renewal is subject to partner review
- Revolving credit access
- Draw funds as needed
Requirements
- Business revenue and cash-flow review
- Time-in-business requirements vary
- Business and owner credit may be reviewed
- Bank statements or other documents may be requested
Ideal For
Key facts
Reviewed by Apply For Financing editorial team on 2026-08-28. Apply For Financing introduces businesses to financing partners and does not lend.
- A business line of credit is revolving: you can draw, repay and draw again up to an approved limit.
- Apply For Financing introduces businesses to third-party financing partners. We do not issue credit lines or set limits.
- Interest is generally charged on the drawn balance. Unused-limit, draw or annual fees can still apply when the line is idle.
- We do not publish a typical limit or rate band because partners set both after reviewing cash flow and existing debt.
- Renewal is not automatic. A partner can reduce, freeze or close a line after a periodic review.
- This structure fits recurring, uneven cash needs. It is usually a poor fit for a one-time asset purchase that should be amortised.
- Partners commonly ask for bank statements, a debt schedule and evidence the business can service draws.
- A line of credit is not a credit card. Pricing, security and default terms follow a commercial agreement.
How this product is usually structured
| Typical use | Seasonal inventory, payroll timing, unexpected expenses |
|---|---|
| Cost basis | Interest on draws plus possible unused-limit or annual fees |
| Amount | A revolving limit set by the partner |
| Term | Revolving, subject to renewal |
| Repayment | Interest-only periods or amortizing draws, partner-specific |
| Security | Unsecured, blanket lien or specific collateral |
| Timing | Partner-specific for the initial limit and later draws |
| Main risk | A reduced limit just when cash is tight |
Who it is usually for
- An operating business with reviewable deposits
- A use case that is revolving rather than a single lump-sum project
- Capacity to repay draws from ordinary operations
What partners typically ask for
- Several months of business bank statements
- Existing credit-card, loan and tax-debt balances
- Ownership and personal-guarantee documents
- A simple cash-flow explanation for peak months
Drawn versus unused cost
If a partner approved a $75,000 line at 12% APR and you drew $25,000 for 90 days, simple interest on that draw would be about $740 before fees. Leaving $50,000 unused might still incur an annual or unused-limit fee. A $75,000 term loan at the same rate would start interest on the full amount immediately. The line is cheaper only if you actually keep the unused portion unused.
Alternatives and when this is not a fit
Working-capital term financing
Clearer when you need the full amount on day one.
Accounts receivable financing
When invoices, not a revolving limit, are the cash source.
Loan comparison tool
Compare a written line offer with a term offer using the same fee inputs.
- A one-time equipment or property purchase
- A business that cannot document deposits
- A plan that depends on the limit never being reviewed
US bank and non-bank lines are priced differently and may require a blanket UCC filing. SBA 7(a) can include a line structure through a participating lender.
Sources
- US Small Business Administration — 7(a) loans — as of 2026-08-28
- ISED — CSBFP frequently asked questions — as of 2026-07-09
Submitting the application form sends your details so we can introduce you to a financing partner. Partners may compensate us. We do not guarantee an offer.
Frequently Asked Questions
Have more questions? Visit our full FAQ page or contact us.
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Tell us about your business and financing needs. We may introduce your request to a third-party financing partner for review.