What is a business line of credit?
A business line of credit is a revolving account that allows you to access a fixed amount of capital, which can be used when needed to meet short-term business needs. A business line of credit is the best financing option when you need extra working capital to handle periodic business expenses or manage cash flow gaps. With ongoing access to funds, you have the flexibility to withdraw only what you need, when you need it—and pay interest only for what you use, rather than total funded amount.
Flexible financing for your business
Unlike a term loan, a business line of credit allows you to run your business without having to apply for a new loan every time you need a bit of extra cash. And with ongoing access to working capital, you can plan for and better manage your business’s future cash flow with less stress. Your line of credit can give you the boost you need to take advantage of opportunities when they arise. One of the main benefits to having a business a line of credit is that it’s revolving, meaning that you can access the credit line when you need it, pay down the balance, and use the line again as funds replenish.
Secured Line of Credit
A secured business line of credit requires a business to pledge assets as collateral to secure the line. Lenders typically ask for short-term assets, such as accounts receivable or inventory.
Loan Amount From $5,000 - $250,000
Qualifying Criteria
Standard LOC:
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550+ credit score
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12+ months in business
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$10,000+ average monthly bank deposits
Startup LOC:
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680+ credit score
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Utilization below 30%
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No recent bankruptcies
Documents Required
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Signed one page funding application
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3-5 months company bank statements (standard)
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Full credit report (startup)
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Business tax returns (not all cases)
Average Term Length: 12-24 Months
How To Get A Business Line of Credit
Pre-Qualify Online
Same Day Approval
Get Funded
To get prequalified, follow the "Apply Now" button and submit some basic business information.
An advisor will reach out to you within 24 hours (during regular business hours) to complete your application and discuss your business funding options.
Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.
Business Line of Credit: Advantages & Disadvantages
Advantages
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Only pay interest on the amount you use, rather than the total amount funded
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Flexible as long as you stay within your credit limit
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Great opportunity to build business credit
Disadvantages
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It can be difficult to increase your credit limit
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Have lower borrowing limits and fees and additional charges can add up if used irresponsibly
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Can be more difficult to qualify for
Why Choose Us?
Unlike traditional banks and other alternative lenders, at Premier Lending Solutions, we truly care about your business. Your success is most important to us, so we’ll never over-leverage your business by giving you more funding than you can handle. Our simple application and quick approval process makes it easy for you to get the working capital your business needs, and our experienced funding consultants will walk with you every step of the way.