Unlike a term loan that provides a lump sum, a business line of credit gives you the flexibility to borrow only what you need within your credit limit and pay back some, or all of it. As you pay back what you owe, only paying interest on the amount you used, that amount becomes available for you to borrow again. Once you’re approved, you can keep using it without having to reapply as long as you’re within your credit limit.

When you draw from a line of credit, you’ll generally have a set time period, either weekly or monthly, to make payments on the amount that you’ve borrowed. There are no annual fees and it’s possible to repay early with no prepayment penalty.

The line of credit your business receives depends on several factors such as your business’s revenue or cashflow, credit worthiness and the lender’s eligibility requirements. Generally speaking, strong finances and good credit score provides access to higher credit limits and lower interest rates.

Yes. Underwriters may approve your request for an increased Line of Credit limit if you’ve demonstrated a good repayment history and have shown capacity to borrow more based on your cashflow and/or net income.

Most of our Business Credit Line Programs report to the business credit bureaus, and much like personal credit, maintaining a healthy credit utilization ratio and on-time payments will reflect on your business credit score. A good business credit score ultimately opens doors for better financing options, stronger credibility with suppliers and vendors and reduced personal liability among others.