Business Lines of Credit

A business line of credit works hard for small businesses because it's both flexible and ready at a moment's notice. Instead of a fixed payment or loan, lines of credit are pre-approved funds you can tap on a purely as-needed basis. And since you only pay for what you borrow, there's no accrued interest or minimum payment when you're not using it.

Why owners keep a line open

• Ready for action — your approved line means funds are ready whenever you need them, so business continues seamlessly
• Limited interest — accrue interest only while credit is in use, back to zero as soon as it's paid off
• Lower-cost capital — access cash on demand at rates that hibernate when not in use
• Fast and easy approval — approval within minutes and funds within 48 hours, with flexible terms that are simple to renew

Is a business line of credit right for me?

How do I secure a line of credit for my business?

Approved lines vary based on your business and can be secured against collateral or unsecured. Secured lines of credit typically offer better rates and terms.

What makes this useful to small businesses?

The primary advantage of a line of credit is your ability to use it as a revolving source of capital. Use it when you need it. Pay it down when you want. Repeat.

When do I accrue interest on my credit line?

You only pay interest on the money you borrow — when you borrow it. As you pay it back, more credit becomes available. You're only charged interest when using funds.

Put simply, the big benefit of lines of credit is they create financial flexibility for small business owners at a lower cost. When an unplanned expense comes up, operations keep moving because credit is waiting. No surprises. No worries. Just cash within reach.

Advantages

• Low cost compared to other funding options
• On-demand access to revolving capital
• Interest rates as low as 6%

Minimum qualifications

• 3 months in business
• 500 minimum FICO score
• $10K minimum monthly gross sales

What you'll need to apply

• Business application
• 6 months of business bank statements
• Direct connection through online banking is preferable

Need a fixed lump sum instead of revolving access? Compare a business term loan or working capital.