BUSINESS LINE OF CREDIT

A revolving line of credit provides a flexible option for business capital, giving you access to funds when you need them without having to pay for what you don’t use.A business line of credit is a flexible business loan that allows you to borrow up to a certain amount, or credit limit, to cover short-term working capital requirements. When you get a business line of credit, the lender approves you to borrow up to a certain amount of money and you’re able to access some or all of that money as you need it. After you fully pay off a portion you’ve used, the full amount of your line of credit is available for you to use again.

Although business lines of credit do operate very similarly to a credit card, they are not the same thing. Credit cards typically have higher interest rates and in many cases, a line of credit does not have a mandatory monthly payment system.

 

How a Business Line of Credit Works

Unlike a term loan, a business line of credit allows you to only pay interest on the amount you actually use. For example, if a business owner has a credit limit of $150,000 but only uses $40,000, they only have to pay interest on the $40,000 draw. Once the amount has been repaid ($40,000), the business owner can draw additional funds up to the amount of their credit limit ($150,000). 

At Fast Commercial Capital, we take pride in the number of small businesses we’ve provided financing to, across a wide range of different industries. To get access to our loans and working capital, you have to meet the following minimum criteria:

  • You need to have been in business for six months or more
  • FICO score must be at least 500 or above
  • Bank statements must show an average of $15,000/month in deposits for a three-month average and the most recent month

Over 90% of our applicants pre-qualify for funding, but meeting these criteria are not a guarantee of an offer of business funding. If you’re thinking you might not qualify, or if you have questions about the other financing products we offer, contact our Customer Success Team.