A business line of credit provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow. … A line of credit is similar to how credit cards work. Need to manage cash flow? A line of credit may be the perfect fit for you.
How much can I borrow?
Typical lines of credit can range from as low as $2,000 to as high as $250,000
What does the money cost me?
Interest rates and fees vary greatly, however on average you can expect to pay anywhere from 9% APR to 75% APR.
Can I pay it off at any time?
In most cases, yes. You can pay off the balance at any time, and then have access to those funds for use again.
Can the lender pull the line of credit at any time?
Yes, depending on many different lender criteria.
Is it easy to qualify for?
It can be easy to qualify for more expensive options, however it can be very hard to qualify for the more cost effective lines of credit. Timing/need of funds always comes into play when determining the best option for your business and situation.
Is good credit required?
No for the more expensive options, and yes for the more affordable options.
Is the approval process fast? How soon can I have access to the money?
The process can be very quick (same day sometimes) for more expensive options, and is typically longer for the more affordable bank oriented options.
How long do I need to be in business to qualify?
We offer line of credit programs that a business can qualify for after being in business for as little as 3 months.