01
Draw As Needed
Access funds whenever you need them without reapplying. Just draw and use.
Business Line of Credit
Flexible, revolving credit that you can draw from whenever you need it. Only pay interest on what you use, and your available credit replenishes as you repay.
- Credit lines from $25,000 to $5,000,000
- Same day approval available
- Draw, repay, and draw again without reapplying
What You Need to Qualify
$30,000+
Minimum Monthly Revenue
6+ months
Established Business History
TrustScore 4.4 / 5 on Trustpilot
How much funding do you need?
Drag the slider or type an amount
$
$20K$5M
Only Takes 30 Seconds
Applying is free and won't impact your credit score
From Application to an Open Credit Line
01
Tell Us About Your Business
Share basic business details and how much revolving capital you want on standby. We look at your revenue and cash flow, not just your credit score.
02
Get Your Credit Limit
We set a maximum credit limit based on your business performance. See your rate on drawn funds and any maintenance fees up front.
03
Open Your Line
Accept your offer and your line is ready. Nothing is owed until you actually draw, and unused credit costs you nothing.
04
Draw When You Need It
Draw any amount up to your limit straight to your business account. As you repay, that credit becomes available again.
The Flexible Funding Solution for Growing Businesses
What Is a Business Line of Credit?
A business line of credit is a revolving pool of capital you can tap whenever you need it. Instead of receiving one lump sum, you are approved for a maximum limit and draw only what you need.
Here is how it works: you are approved for a credit limit, for example $100K. Draw any amount up to that limit when an expense or opportunity comes up. Interest accrues only on your outstanding balance, never on the unused portion. As you pay the balance down, that credit becomes available again, so the same line can cover inventory this month and payroll next month without a new application.
Business Line of Credit Specifications
A line of credit is priced on the balance you have drawn, not on your full limit. If you have a $200K line and draw $40K, you only pay interest on the $40K.
There are no fees on unused credit. Most lines charge interest on drawn amounts plus a small annual or monthly maintenance fee.
- Loan Amounts
- $25,000 to $5,000,000
- Rates
- 1% to 3% monthly on drawn funds
- Terms
- Revolving, renews as you repay
- Speed
- 1 to 3 days
Businesses That Benefit From a Line of Credit
A line of credit works best for businesses with ongoing or unpredictable capital needs that want funds on standby without paying for money they are not using.
- Restaurants and Food ServiceCover inventory runs, emergency equipment repairs, and seasonal prep. Draw only what each need requires.
- Retail and EcommerceStock up ahead of busy seasons and repay as inventory sells, freeing the line for the next buying cycle.
- Construction ContractorsBridge the gap between job costs and progress payments. Draw for materials and labor, then repay when the client pays.
- Medical and Healthcare PracticesSmooth out slow insurance reimbursements and keep payroll steady while claims are processed.
- Staffing AgenciesMeet weekly payroll while waiting on client invoices. The line refills as receivables come in.
- Manufacturing and DistributionFund raw materials and large orders on demand without taking on a new loan for every purchase order.
How Credit Factors Into Line of Credit Approvals
Your credit profile matters for a line of credit, but it is only part of the picture. Business revenue and cash flow play a major role in your approval and credit limit.
- Steady monthly revenue supports a higher limit
- Consistent bank deposits demonstrate stability
- Time in business builds lender confidence
- Positive payment history can unlock limit increases
Good news
A line of credit can grow with you. After establishing a positive payment history, you can request a credit line increase based on your business growth and performance.
Strong Credit and Revenue
Larger credit limits, lower rates, and faster approvals
760Score
Developing Credit Profile
Smaller starting limits that can increase with responsible use
502Score
Why Businesses Keep a Line of Credit Open
82%
of small businesses experience cash flow issues at some point. A line of credit keeps a buffer ready before those gaps appear.
Source: QuickBooks State of Cash Flow Survey
$0
in fees on the unused portion of your line. You pay interest only on the balance you have drawn.
Source: Tree of Life Funding
$25K to $5M
range of credit lines available through Tree of Life Funding, sized to your revenue and business performance.
Source: Tree of Life Funding
Evaluating a Business Line of Credit
Pros
- Pay interest only on what you draw
- Credit replenishes as you repay
- Draw repeatedly without reapplying
- No fees on unused credit
- Covers ongoing and unpredictable expenses
- Helps build your business credit profile
Cons
- Maintenance fees may apply even in months you do not draw
- Initial limits may be smaller than a lump sum term loan
- Less suited to large one-time purchases with a known cost
- Requires discipline to avoid carrying a high balance
Line of Credit vs Other Funding Options
| Loan Type | Max Amount | Rates | Speed |
|---|---|---|---|
| Business Line of Credit | $25K to $5M | 1% to 3% monthly | 1 to 3 days |
| Working Capital Loan | $25K to $5M | 1% to 4% monthly | 24 to 48 hours |
| Merchant Cash Advance | $10K to $5M | Factor 1.1 to 1.5 | Same day to 48 hrs |
| Revenue Based Financing | $10K to $5M | 1% to 6% monthly | 1 to 2 days |
| Business Term Loan | $50K to $5M | 6% to 25% APR | 1 to 3 days |
Line of Credit Qualification Factors
- Monthly Revenue
- Steady
- Bank Deposits
- Consistent
- Operating History
- Established
Open Your Business Line of Credit
The application is quick and focused on how your business performs. Same day approval is available.
Apply for a Line of CreditStep 1: Submit Application
Provide basic business information and the credit limit you would like to have available. It only takes a few minutes.
Step 2: Share Business Documents
Upload recent business bank statements so we can review your revenue and cash flow.
Step 3: Review and Accept
Receive your credit limit with clear terms on rates and fees. Once accepted, draw funds whenever you need them.
Similar Funding Products
If a line of credit is not the right fit, these alternatives might work better for your situation.
Lines of Credit by Industry
These industries commonly use a revolving line of credit to manage cash flow and seize opportunities.
Restaurant Lines of Credit
Inventory, repairs, and seasonal prep
View IndustryConstruction Lines of Credit
Bridge job costs and progress payments
View IndustryRetail Lines of Credit
Seasonal inventory on demand
View IndustryStaffing Agency Lines of Credit
Payroll while invoices are outstanding
View IndustryFAQs
Business Line of Credit Questions
You are approved for a maximum credit limit, for example $100K. Draw any amount up to that limit when needed, pay it back, and the credit becomes available again. It works much like a credit card, but with better rates.
A line of credit is ideal for ongoing or unpredictable capital needs. A term loan is better for one-time expenses with a known amount, like equipment or expansion projects.
Most lines of credit have an interest rate on drawn amounts plus a small annual or monthly maintenance fee. There are no fees on unused credit.
Yes. After establishing a positive payment history, you can request a credit line increase based on your business growth and performance.
Yes. Draw whenever you need to, up to your credit limit. As you repay, that credit becomes available again without a new application.
No. Interest accrues only on your outstanding balance. If you have a large line but only draw a small portion, you only pay interest on that portion.
Approval can happen the same day, and new lines are typically set up within 1 to 3 days. Once your line is established, draws are typically available within 24 hours, often same day.
Almost any business need: inventory, payroll, repairs, marketing, seasonal preparation, covering gaps while you wait on customer payments, or unexpected opportunities.
Put Capital on Standby
Find out how large a credit line your business qualifies for. Draw when you need it and pay nothing on what you do not use.
How much funding do you need?
Drag the slider or type an amount
$
$20K$5M
Only Takes 30 Seconds
Applying is free and won't impact your credit score