What it is and How it works

A business line of credit is a type of funding that allows you to borrow from a set amount of money. You’re given a credit limit, and within it you can draw what you need, when you need it. You only pay interest and fees on what you borrow based on the remaining principal balance. Your credit line approval amount and repayment term to calculate the minimum payment amounts are based on business revenues, credit, time in business, and sometimes which industry you are in.