What is a business line of credit?
A business line of credit is a revolving credit limit you can draw from whenever you need cash, repay, and draw again — like a credit card without the card. You only pay interest on the amount you've actually drawn.
It's the most flexible tool in the funding toolbox: keep it open for emergencies, smooth out seasonal swings, or fund recurring short-term needs without reapplying each time.
How it works
- You're approved for a maximum credit limit.
- Draw any amount up to that limit, anytime, transferred to your bank account.
- Pay interest only on what you've drawn — not the full limit.
- As you repay, your available credit replenishes.
What it costs
You pay interest only on what you draw, not on the full limit. Typical pricing is the prime rate plus about 2–6% APR, and some lines also charge a draw fee or an annual fee.
As you repay, the amount becomes available to draw again. Ask how each draw is repaid and whether there is a fee for an unused line, then model a draw with the line of credit calculator.
Rates, amounts and terms on this page are typical ranges, not offers or guarantees. Your terms depend on your business and the lender that makes the offer. Cashifi is not a lender and does not make credit decisions.
Best for
- Managing seasonal or unpredictable cash flow
- Ongoing short-term needs (inventory, payroll, repairs)
- Keeping a safety net open for emergencies
- Businesses that don't want to reapply each time they need cash
Pros and considerations
Pros
- + Only pay for what you use
- + Reusable — draw, repay, draw again
- + Lower cost than most short-term lump-sum products
- + Fast access to drawn funds
Considerations
- – Requires stronger credit and revenue than working capital
- – May carry draw or maintenance fees
- – Limits can be reduced if revenue drops
Do you qualify?
- 6+ months in business
- 550+ credit score (varies by lender)
- ~$8,000+ in monthly revenue
- Consistent bank deposits
Typically you'll provide: 3–4 months of business bank statements, A voided business check.
How to apply
- 1Complete one application online — about four minutes, with a soft credit check that won't affect your score.
- 2Upload your recent business bank statements so lenders can see your revenue and cash flow.
- 3Compare the offers that come back, ranked by total cost, and choose the one that fits. There is no obligation.
Frequently asked questions
How is a line of credit different from a loan?
A term loan gives you one lump sum repaid on a fixed schedule. A line of credit is revolving — you draw what you need, pay interest only on that amount, and reuse it as you repay.
Does an open line of credit cost anything if I don't use it?
Often very little — you generally pay interest only on drawn funds, though some lenders charge a small maintenance or draw fee. We'll show you the terms before you commit.
How fast can I draw funds?
Once your line is set up, draws typically reach your bank account within 1–2 business days.