Funding solution
Business Line of Credit for Small Businesses
A business line of credit gives US small businesses revolving access to roughly $10K–$250K; you draw only what you need and pay interest only on the outstanding balance. BusinessLending360 is not a lender — we match your request with options from 1,700+ funding sources in minutes.
Typical range: $10,000 – $250,000
How business line of credit works
A line of credit is approved once and then stays available. A funding provider sets a credit limit based on your revenue, time in business and credit profile. From that point you draw funds whenever you need them, in whatever increments you choose, up to the limit.
You are charged interest only on the amount actually drawn, not on the full limit. As you repay principal, the availability replenishes — which is why a line of credit is described as revolving. Most providers require a minimum monthly payment covering interest plus a portion of the drawn balance.
Draw requests are usually made from an online dashboard, and funds typically settle to your business bank account within one to three business days. Some providers can settle a draw the same business day when the request is made early and your account is fully verified.
Lines are commonly reviewed every six to twenty-four months. A business that draws and repays consistently is often reviewed for a higher limit; a business whose deposits fall may see the limit reduced at renewal.
Rates and costs
Business line of credit pricing is normally quoted as an annual interest rate on the drawn balance. Pricing from online providers rises for shorter operating histories, thinner deposits or weaker personal credit. Bank-issued lines are priced lower but apply materially stricter qualification standards.
Beyond the rate, ask each provider about the fee structure: a draw fee charged as a percentage of each advance, an annual or monthly maintenance fee on the facility, and any minimum-utilisation requirement. Two lines quoted at the same interest rate can differ substantially once the draw fee is included, especially for a business that draws frequently in small amounts.
BusinessLending360 does not set or advertise rates. Pricing is set by each funding provider and depends on credit profile, revenue, time in business, amount and term. Confirm current pricing directly with the provider.
Amounts and terms
- Typical credit limit
- $10,000 – $250,000
- Rate basis
- Est. APR on the drawn balance
- Draw term
- Revolving, 6 – 24 month draw periods
- Repayment
- Weekly or monthly, interest on drawn balance
- Typical funding speed
- 1 – 3 business days after approval
- Collateral
- Often a general business lien; personal guarantee common
How to qualify
- At least 6 months in business (some providers require 12+).
- Roughly $10,000+ in average monthly revenue, evidenced by bank statements.
- A US-registered business entity with a business bank account.
- Personal credit typically 600+, with options considered from 550.
- No open bankruptcy; recent tax liens usually need a payment plan.
Pros and cons
- You pay interest only on what you draw, not the full limit.
- Availability replenishes as you repay, so one approval covers recurring gaps.
- Useful for unpredictable needs: payroll timing, inventory, seasonal dips.
- Consistent use and repayment can support a higher limit at renewal.
- Rates are usually higher than a comparable secured term loan.
- Draw or maintenance fees can raise the effective cost of small advances.
- Limits can be reduced or the line closed at review if revenue declines.
- Revolving access can encourage borrowing beyond what the business needs.
Common use cases
- Covering payroll when customer payments arrive late
- Buying inventory ahead of a seasonal peak
- Bridging the gap between a job starting and the invoice being paid
- Keeping an unused reserve available for emergency repairs
Alternatives to consider
Frequently asked questions
- What credit score do I need for a business line of credit?
- Most online funding providers look for a personal score around 600 or above, and some consider profiles from 550 with stronger revenue. Bank-issued lines usually expect 680+. Your score is one input among revenue, time in business and deposit consistency.
- Does an unused business line of credit cost anything?
- It depends on the provider. Many online lines charge nothing when the balance is zero, while others apply an annual or monthly maintenance fee, or a minimum-utilisation requirement. Ask for the full fee schedule before you accept a line.
- How fast can I draw funds?
- Once the line is approved and your bank account is verified, draws typically settle in one to three business days. Some providers can settle same day when the request is made early in the business day.
- Is a line of credit better than a term loan?
- A line of credit fits recurring, unpredictable needs because availability replenishes. A term loan usually prices lower and suits one defined purchase with a known amount and a fixed repayment schedule.
- Will checking my options affect my credit score?
- Submitting a request on BusinessLending360 is not a credit application and does not affect your credit score. A funding provider whose offer you choose to move forward with may run its own review.
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