Line of Credit
Business Line of Credit
Revolving capital you can draw on demand.
A business line of credit gives you ongoing access to funds up to a set limit — draw what you need, pay interest only on what you use, and the credit replenishes as you repay. Simply Approved Business Loans offers revolving lines from $10,000 to $1,000,000 with same-week approval.
Best for
- Managing cash flow gaps
- Covering payroll between receivables
- Stocking up on inventory
- Handling unexpected expenses
Key features
- Pay interest only on what you draw
- Funds replenish as you repay
- No prepayment penalty
- Draw as often as needed
- Build business credit history
How Line of Credit works
A line of credit (LOC) is a revolving facility — like a business credit card but with cash drawdowns. You're approved for a maximum limit, draw funds when needed, and pay interest only on the outstanding balance.
As you repay, the credit becomes available to draw again. Most LOCs require monthly minimum payments (interest plus a small principal portion) and can be drawn via online dashboard, ACH transfer, or check.
LOCs are ideal for recurring cash-flow gaps — payroll between client invoices, seasonal inventory, unexpected repairs — where you want capital available but don't want to pay for it sitting unused.
Qualifications
| Time in business | 12+ months |
| Min monthly revenue | $15,000 |
| Min FICO | 625 |
| Documents | Application + 3 months bank statements |
Pros
- Pay interest only on drawn balance
- Replenishes as you repay
- Lower effective cost than MCA or term loan
- No prepayment penalty
- Builds business credit
Cons
- •May charge inactivity, draw, or maintenance fees
- •Credit limit may be reduced if business performance drops
- •Personal guarantee typically required
- •Slower to fund first draw than MCA
Common mistakes to avoid
- Maxing out the LOC and treating it like a term loan
LOCs are best at 50–70% utilization. A maxed line signals stress to underwriters and can trigger reductions or callbacks.
- Skipping the LOC because you don't need it today
Set up an LOC before you need it. Approval is faster and pricing better when the business is healthy, not when cash is tight.
- Ignoring fee structure
Watch for draw fees (1–3% per draw), inactivity fees, and annual renewals. They can quietly add 200–400 bps to effective cost.
Real-world scenarios
A 25-person digital agency uses a $150k revolving LOC to bridge bi-weekly payroll between client AR cycles. Average utilization 40%, average draw repaid in 30–45 days.
A residential remodeler uses an $80k LOC to fund materials and labor between progress draws on each job, drawing 2–4 times per project.
When another product is a better fit
- Merchant Cash Advance →
If you need 24-hour funding and have weaker credit.
- Business Term Loan →
If you have a one-time large expense, not recurring needs.
- Invoice Factoring →
If your cash gap is specifically B2B receivables.
How to apply
- 01
Submit application with EIN/SSN
- 02
Provide 3 months of bank statements
- 03
Receive credit limit decision
- 04
Draw funds anytime via dashboard
Line of Credit vs. other funding options
Side-by-side comparison of Line of Credit against the most common alternatives. Use this to decide which structure fits your business stage, cash flow, and use of funds.
| Product | Amount | Term | Speed | Best for |
|---|---|---|---|---|
| Line of Credit This page | $10,000 – $1,000,000 | Revolving | Approved in 1–3 days | Managing cash flow gaps |
| Working Capital → | $5,000 – $1,000,000 | 3 – 24 months | Funded in 24 hours | Bridging seasonal slow periods |
| MCA → | $5,000 – $2,000,000 | 3 – 18 months | Funded in 24 hours | Restaurants & retail with daily card sales |
| Term Loan → | $25,000 – $5,000,000 | 1 – 5 years | Funded in 2–7 days | Expansion, renovations, or buildouts |
FAQs about Line of Credit
Lead-gen pre-check
See if you qualify for Line of Credit
$10,000 – $1,000,000 · Approved in 1–3 days. Pre-qualification is free and doesn't affect your credit.
Free pre-check
Eligibility checker
No credit pull. No data stored. Instant answer.
Underwriting disclaimer: The eligibility checker is a self-reported pre-qualification tool. It does not constitute an offer of credit or a guarantee of approval. Every funded file goes through full underwriting — including bank statement analysis, business verification, and a credit inquiry whose type (soft or hard) is disclosed before you sign. Final terms, rates, and amounts depend on underwriting and the specific lender or program.
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Free to apply. No upfront fees. Real underwriters review every file.
Related products
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses
- Amount
- $5,000 – $1,000,000
- Speed
- Funded in 24 hours
Merchant Cash Advance
Fast capital based on future receivables
- Amount
- $5,000 – $2,000,000
- Speed
- Funded in 24 hours
Business Term Loan
Fixed-rate financing for major investments
- Amount
- $25,000 – $5,000,000
- Speed
- Funded in 2–7 days
Line of Credit by state
State-specific underwriting notes and scenarios for Line of Credit borrowers.
- Line of Credit in New York4-month statements
- Line of Credit in California4-month statements
- Line of Credit in Texas3-month statements
- Line of Credit in Florida3-month statements
- Line of Credit in Illinois3-month statements
- Line of Credit in Georgia3-month statements
- Line of Credit in Pennsylvania3-month statements
- Line of Credit in Ohio3-month statements
- Line of Credit in Arizona3-month statements
- Line of Credit in Massachusetts3-month statements
- Line of Credit in Washington3-month statements
- Line of Credit in Michigan3-month statements
- Line of Credit in North Carolina3-month statements
- Line of Credit in Virginia3-month statements
- Line of Credit in New Jersey3-month statements
- Line of Credit in Colorado3-month statements
- Line of Credit in Nevada3-month statements
- Line of Credit in Tennessee3-month statements
- Line of Credit in Oregon3-month statements
- Line of Credit in Indiana3-month statements
- Line of Credit in Minnesota3-month statements
- Line of Credit in Missouri3-month statements
- Line of Credit in Louisiana3-month statements
Get funded in as little as 24 hours
$5,000 to $25,000,000. Free pre-qualification. No upfront fees. Same-day decisions for clean files.