Know your options
Business lines of credit for cash-flow gaps
Access funds as needs arise instead of taking a lump sum all at once. A credit line may fit a recurring gap between paying expenses and collecting revenue.
No account to apply · No upfront fees · No obligation to accept
Understand the cost and commitments
- Check interest and draw fees together. Some facilities also charge maintenance or unused-line fees.
- Confirm whether available credit replenishes after repayment and whether future draws require a new review.
- Compare the payment frequency and term of each draw with your collection cycle.
Have written terms already? Compare two offers or use the financing cost calculator for fixed-payment estimates. These tools do not model every credit line, lease or revenue-based agreement.
A situation to plan for
Put the payment in context
Illustrative example, not a funded customer result.
A wholesaler pays for inventory before customers pay their invoices. A credit line could bridge that interval. Compare the draw cost and payment dates with a slower-than-expected collection scenario before committing.
Plan your working capital →What funding sources review
Funding sources review revenue, operating history, credit, existing obligations and cash flow. Limits and availability depend on underwriting; a credit line is not guaranteed ongoing access.
Starting an application does not itself pull credit. Read the authorization before signing and ask your advisor what happens next.
Prepare for a conversation
- Recent business bank statements (start with four months)
- Business and ownership details, and current debt payments
- The amount needed and a plan for using and repaying draws
Common questions
Do I pay for the entire credit limit?
Interest may apply to the drawn balance, but draw, maintenance or other fees can still apply. Ask for the full fee schedule rather than comparing interest alone.
Can I draw again after repaying?
Many lines are revolving, but replenishment, draw eligibility and renewal depend on the agreement. Confirm those rules with your advisor.
Is a credit line the same as a term loan?
A term loan generally provides a lump sum with an agreed repayment schedule. A line allows draws up to an approved limit, subject to its terms. Compare the actual cost and payment schedule of the structure you need.
See how funding fits your industry
Compare other funding structures
Explore what fits your business.
An advisor can help you compare the available options, total costs and payment schedules before you decide.