Business Line of Credit


Business lines of credit are popular business funding options. They provide access to funds on an as-needed basis, and can be drawn against and repaid multiple times over as the natural income and expenses of a business ebb and flow.

Business lines of credit typically have much lower rates than a credit card, while providing similar functionality in many respects.

Business Line of Credit Guide

What is a Business Line of Credit?

A business line of credit is a form of credit, analogous to a credit card in many respects, designed for business owners to help manage their financing and expenses.

A certain credit limit is set and approved, and the borrower can use anywhere from 0% of the limit all the way up to 100%, and borrow more (up to the limit) as needed.

There are weekly or monthly repayments required, not unlike with a credit card. However, the interest rates are typically much lower than a credit card, and the credit line provides access to funds without collateral requirements.

It allows the flexibility business owners need to manage the dynamic expenses of their business, without a commitment up-front to a particular loan amount

How Does a Business Line of Credit Work?

A business line of credit works like a bit of a mix of a traditional loan and a credit card application. Essentially, rather than seeking immediate funds, you’re looking for approval or a credit facility up to a certain dollar value limit.

Once approved, you can use this facility to borrow as little or as much as you need on a rolling basis. Weekly or monthly repayments are calculated only on the balance outstanding – as you pay it down, they decrease. 

If you need to borrow more, they increase. This is in contrast to a traditional loan where you get all the money up-front, then pay it back via fixed or dynamic repayment methods.

Is a Business Line of Credit Right for My Business?

Most businesses, especially small businesses, can benefit from a business line of credit. It’s especially valuable for small business funding with bad credit. 

While the requirements are a bit higher than other options like merchant cash advances, a business line of credit is still much easier to qualify for than a traditional small business loan or other loan products that provide cash up-front.

They provide the kind of flexibility to manage changing expenses and incomes, and provide a safety net that is especially valuable for small business owners. When you can’t get a business loan with bad credit, need flexibility, and don’t want to pay to borrow more than you need right now, a business line of credit can be an ideal solution.

How Do I Qualify for a Business Line of Credit?

In most cases, the requirements to qualify for a business line of credit are fairly limited and straightforward. Individual circumstances may warrant additional requirements, especially in the case of higher desired credit limits.

In general, though, at BizFly Funding, the basic requirements for a business line of credit include:

  • Estimated Credit Line Term: Flexible
  • You must have been in business for at least 6 months
  • You must have a 650 or greater credit score
  • You must have at least $10,000 per month in revenue
  • Rates: 5% – 10%*
  • Min Monthly Revenues: $10,000
  • Min Credit Line Amount: $5,000
  • Max Credit Line Amount: $250,000
  • Max Number of Negative Days: None
  • Rates depend on duration of funding

What Will a Business Line of Credit Cost Me?

One of the most appealing aspects of a business line of credit is the low costs compared to traditional credit cards and other credit facilities. There are no up-front costs or fees, and generally no maintenance or service fees.

You pay only for what you borrow, in the form of repayment of principal plus interest. Interest rates are typically in the range of 5 to 10% (as compared to credit cards, which can be 15-25% or more).

There are no collateral requirements, either. You simply make weekly or monthly payments (based on the agreement) of a certain amount of principal and interest, comparable to a credit card minimum payment. If you borrow more, you pay more.

If you repay what you’ve borrowed, you pay less, until your balance is $0. You can keep it at $0 and retain the business credit line, too, for whenever you need it, with no ongoing costs.

What Are the Main Uses of Business Lines of Credit?

Like many business loan and credit products, you can use business lines of credit for whatever expenses or costs you need to cover. Since they aren’t a loan, per se, the flexibility to draw on them as needed is particularly appealing.

As such, many of the most common uses for business lines of credit revolve around flexibility and dynamic expenses.

The most common uses of a business line of credit for many of our clients include:

  • Managing cash flow, since receivables can often take quite a while to clear
  • Managing inventory, purchasing additional inventory when needed
  • Paying for employee payroll expenses, especially with seasonal or variable labor
  • Covering variable operating expenses, purchase orders, service payments, and so on

How Do I Apply for a Business Line of Credit With Bizfly Funding?

With BizFly Funding, you can apply for a business line of credit online, through our website, in a very simple, quick, and easy process. Pre-approval can be received in as little as 30 minutes, and it will not affect your credit score.

Step 1: Apply
  • Fill out our One Page Application.
  • Submit the last 3 months of your Business Bank Statements.
  • It is free and will not affect your credit score.
  • You must be in business for a minimum of 6 months - No-Startups.
Step 2: Get Approved

As soon as this is submitted completely, it will be submitted to our underwriters and our Funding Specialist will contact you with a few offers to choose from. 

Get an approval within hours after your application is processed.

Step 3: Get Funded
  • Choose one of the offers provided by the Funding Specialist and provide a few extra documents to complete your submissions.
  • Once the underwriters have received the full submissions package – the funds will hit your business bank account within 1-2 business days.
  • In some cases, same day funding can be applied.

Business Line of Credit Recap

A business line of credit can be a valuable and flexible tool for business owners to manage their finances. It provides business financing and financial security at a reasonable price, with no collateral required. It’s considered a staple of business financing for many small businesses.

  • Flexible line of credit, allowing you to borrow as little or as much as you need at any given time
  • You pay interest on only the outstanding balance
  • Can draw down or draw up the credit facility as needed
  • Weekly or monthly minimum payment options (or additional repayments as desired)
  • No pre-approval fees, up-front costs, or maintenance fees
  • Available even with less-than-perfect credit
  • Far more accessible and easy to qualify for than traditional business loans
  • Competitive, low interest rates compared to credit cards and other credit products

If you have additional questions about a business line of credit from BizFly Funding, need more information, or help with your loan application, our support team is more than happy to assist you!

Simple Online Application Process

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Business Line of Credit FAQ’s

There have been cases where the credit line is available the same day.

There are no restrictions on how you use the money.

No. As long as the balances are settled you can close your account at no cost.

You can receive the funds to your account via ACH transfer or wire transfer. The difference is that a wire transfer has a cost but it is available immediately, and ACH transfers although free can take up to three days.

Yes. We also consider your business banking history and several other factors which can result in an approval. We encourage you to apply as we have various funding options and a loan expert will help you decide which one is right for you.


A minimum of six months in business is required for our credit lines.


No. We take pride in the privacy we offer, we never sell your information to anyone.

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