A business Line of Credit is a flexible funding solution that allows you to borrow up to a predetermined limit. Unlike a term loan, you can draw funds as needed and only pay interest on the amount you use. It’s an excellent tool for managing cash flow, covering unexpected expenses, or capitalizing on growth opportunities.

A Line of Credit offers more flexibility than a term loan. With a line of credit, you can borrow funds up to your credit limit, repay them, and borrow again as needed. You only pay interest on the amount you’ve drawn. In contrast, a term loan provides a lump sum that you repay over a fixed period, regardless of whether you use all the funds.

Once your Line of Credit is approved and set up, you can typically access funds within 1-2 business days of making a draw request. This quick access makes it an ideal solution for managing short-term cash flow needs or seizing time-sensitive opportunities.

Yes, it’s often possible to increase your Line of Credit limit as your business grows and demonstrates responsible use of the credit line. Regular reviews of your account and business performance may lead to offers of increased credit limits. Always communicate with your lender about your growing business needs.