A line of credit gives your business a pool of capital you can draw from as needs come up, instead of taking one lump sum. We help owners compare two line of credit paths in our catalog: a syndicated line of credit and a revenue-based line of credit. No hard credit pull to start.
A lender sets a credit limit, you draw what you need, and you repay what you used, which typically frees that room up again. Owners often use a line for uneven cash flow, inventory or surprise expenses. Two common paths are a syndicated line of credit, based mostly on the owner's personal credit, and a revenue-based line of credit, based mostly on business deposits.
By Robbie Garvey, Founder · Last updated
What this means: A pool of money you draw from when you need it and use again as you pay it down.
New to these words? See the glossary. Every decision and every term comes from the lender.
A business line of credit works a lot like a reserve tank. A lender sets a limit, you draw what you need, and you repay what you used. As you repay, that room typically opens back up. Many owners like this structure because it matches how cash actually moves through a business: unevenly. Payroll lands on a fixed day, customers pay on their own schedule, and opportunities rarely wait for a convenient month.
Because you are usually charged only on the amount you draw, a line can be a calmer way to keep options open than borrowing a large amount you might not need yet. The specific costs, draw rules and repayment schedule depend on the lender and the offer, so we always walk through those details with you before you decide anything.
Syndicated Line of Credit (SLOC). A SLOC is credit arranged across more than one lender or card issuer, typically built around the owner's personal credit profile. It can suit owners with strong personal credit who want flexible access to capital, including some newer businesses. Learn how a SLOC works.
Revenue-Based Line of Credit. A revenue-based line looks more closely at the health of your business deposits and sales than at personal credit alone. It may fit established businesses with steady monthly revenue that want ongoing access to working funds. Learn how a revenue-based line works.
Not sure which one sounds like you? That is exactly what the first conversation is for. Sometimes neither is the best fit, and a different option such as working capital or equipment financing makes more sense. We would rather tell you that up front.
Owners tend to reach for a line of credit when timing is the problem rather than the business itself. Typical uses include covering payroll while waiting on receivables, buying inventory ahead of a busy season, handling a surprise repair, taking advantage of a supplier discount, or simply keeping a cushion on hand so a slow month does not become a stressful one.
A line is usually less suited to large, one-time purchases with a long useful life, such as a building or major equipment. Those often fit better with real estate financing, SBA and long-term options or equipment financing, where the repayment period can match the life of the asset.
Every lender is different, but most will want to understand time in business, monthly revenue and deposit patterns, existing debts, and the owner's credit profile. For a SLOC, personal credit tends to carry more weight. For a revenue-based line, recent bank statements and consistent deposits often matter most.
To get ready, it helps to gather three to six months of business bank statements, a basic description of the business, your ID, and a recent copy of your own credit report, which you can pull through our IdentityIQ link. Our A to Z Funding Prep Checklist lists the usual items in one place.
We are a business funding broker. We listen first, explain the options, and look across our network of lending partners for paths that fit how you actually run. Every funding decision is made by the lender, and you are never obligated to accept an offer. When it feels right, you can start with a short application or a quick call.
Short-term funds for payroll, inventory, marketing or a slow season. Often repaid from future sales.
Credit lines arranged across lenders, built around a strong personal credit profile.
Reusable credit sized around your business deposits and revenue.
Credit shapes the options open to you. See how lenders look at it, check where you stand and find help if you need it.
Neither is better in general. A line suits ongoing or uneven needs, while a term loan or equipment financing often suits a single planned purchase. We help you compare based on your situation.
There is no hard credit pull to start. You share your own credit report, and any later credit checks are explained before they happen.
A SLOC leans more on the owner's personal credit profile, while a revenue-based line leans more on business deposits and sales history.
Some paths, such as a SLOC, may be open to newer businesses with strong personal credit. Each lender sets its own criteria.
Applying is free and takes a few minutes. Here is what to expect, step by step.
A short online application, or a call with our team. About the business, what the money is for and how much you have in mind.
My team and I review what you shared and call or text you, usually to ask a few questions and explain what we see.
Usually recent bank statements and your own credit report through our IdentityIQ link. No hard credit pull to start.
We shop your file with lending partners and walk you through any offers, including the total payback.
Take an offer or don't. There is never pressure, and you can stop at any point.
Timing depends on the option and the lender. We'll give you honest expectations once we know your situation. Rather talk first? Book a free 20-minute call.
A short, free application. No hard credit pull to start.
No pressure and no hard credit pulls to start. Tell us where your business stands, and we'll walk the options together.
