Get a Business Line of Credit Fast

A business line of credit is a financial product that provides business owners with a safety net of available capital. Much like a personal or business credit card, you can choose when to use those funds and only pay interest on the amount you borrow.

Join the Lending Revolution

LendRev can provide access to capital fast because we offer a direct path to the lending marketplace, empowering businesses like never before. Just complete one free application and LendRev gets to work, searching our network of lending partners where they compete for your business.

Apply Today. Get Funded Tomorrow.

Fill Out a Free Online Application

Step 1

Fill out a single, free online application*

Speak With a Funding Coordinator

Step 2

Speak with your personal funding coordinator

Receive Same-day Approval

Step 3

Receive same-day approval with proper documentation

Receive Funding in 24 Hours

Step 4

Receive the funding you need in as little as 24 hours

What are the advantages of a business line of credit?

  • You can respond quickly to unexpected expenses and opportunities.

    Having a business line of credit ready and waiting can be a lifesaver when unexpected expenses threaten the stability or growth of your company. Having ready capital can allow you to order the inventory you need to fulfill an unusually large order. You can use the funds to cover payroll when seasonal sales dip or to pay to have a vital piece of equipment repaired. Whatever the situation, having funds waiting in the wings gives you the flexibility to respond quickly.
  • Unlike a term loan, you only pay interest on the amount you withdraw.

    With a term loan, you receive your total loan amount up front – and you begin incurring interest on those funds immediately, even if you don’t spend the funds right away. With a business line of credit, you don’t pay any interest until you make a withdrawal from your LOC and then you only pay interest on the amount withdrawn.
  • A business line of credit can be easier to obtain than a traditional loan, especially from alternative lenders.

    The application process for a line of credit from an alternative lender is easier than applying for an LOC from a traditional lender, but both are far less involved than submitting an application for a term loan. The application process for a term loan can take weeks to complete. Additionally, traditional term loans cater to borrowers with high credit scores and more established businesses. Alternative lenders have made this type of financing much more feasible for younger businesses with lower credit scores.
  • Both the approval and funding processes are much faster for alternative lending LOCs than traditional loans.

    A completed business line of credit application for an alternative lender can be approved and funded in as little as 48 hours. An LOC or term loan from a bank can take weeks.
  • A business line of credit can be a great way to build your company’s credit score.

    By using your credit line and paying it off in a timely manner, you can improve your credit score and establish your company’s creditworthiness. This is especially important for younger businesses that have yet to establish their credit history.

What are the disadvantages of a business line of credit?

  • Interest rates will be higher.

    Interest rates on a business line of credit are going to be higher than those offered by term loans from traditional lenders. While banks and credit unions will typically offer the lowest rates for LOCs, those will also be the most difficult to obtain.
  • Collateral may be required.

    Interest rates on a business line of credit are going to be higher than those offered by term loans from traditional lenders. While banks and credit unions will typically offer the lowest rates for LOCs, those will also be the most difficult to obtain.
  • Lenders may require documentation updates.

    Interest rates on a business line of credit are going to be higher than those offered by term loans from traditional lenders. While banks and credit unions will typically offer the lowest rates for LOCs, those will also be the most difficult to obtain.

About Business Lines of Credit

Business Lines of Credit at a Glance


Line of Credit Amount

Amount:
Up to $100,000

Line of Credit Repayment Terms

Repayment Term:
Up to 12 Months

Line of Credit Interest Rates

Interest Rate:
20-40% Variable Rate

Line of Credit Credit Score

Credit Score:
600+

Line of Credit Payment Frequency

Payment Frequency:
Determined by Borrower

Line of Credit Funding Received

Funding Received:
As Quickly as 24 Hours

Business Lines of Credit versus Traditional Loans


The below information reflects typical line of credit terms and conditions. Some lenders may offer LOC products outside of these parameters. For instance, SBA CAPLines lend up to $5,000,000 but have very strict application requirements.

Business Line of Credit Business Loan
Interest is only charged on the amount you withdraw from your account. Interest is charged on the entire amount of the loan.
Lenders may increase your limit and alter your payment schedule as they become more familiar with your payment habits. The amount of the loan and payment schedule do not change.
High credit scores are not essential to the application process for alternative lenders. Traditional lenders do require applicants to have a strong credit score.
Funds can be delivered as quickly as 24 hours after your application has been approved. It can take 1 to 2 months before the loan is secured and cash is available.
The application can be completed in as little as 10 minutes, with minimal documentation required. Extensive vetting of the business is done, requiring financial statements and other personal information.
Additional fees include maintenance and draw fees. Additional fees include origination fees and closing costs.
You decide how much to withdraw and when to repay the funds, as long as the funds and interest are paid in full by the end of the term. You receive the entire loan amount up front, and submit the same payment every month until the loan is paid in full at the end of the term.

Common Questions About Business Lines of Credit


What is a business line of credit?

A business line of credit is a flexible form of financing that allows you to withdraw only the funds you require from an account containing a lender-approved amount. You only pay interest on the amount you withdraw. Once that amount has been repaid, you’re free to withdraw it again, which is why this type of funding is called “revolving” credit. You borrow funds, you repay those funds, you’re free to borrow those funds again for the life of the agreement. Both traditional lenders and online lenders offer lines of credit. LOCs may be short-term or medium term and may or may not require the funds to be secured with collateral.

How can Lendrev help you get a business line of credit?

When you complete a LendRev application, we immediately get to work finding you the best financial product for your company. Our network of lenders competes for your business, which means quicker approval times, more beneficial terms, and better rates for your business. When we find financing matches, your personal funding coordinator will assist you in completing the process and answering any questions you might have.

What are the minimum qualifications to apply for a business line of credit?

The minimum qualifications for a business line of credit differ between a traditional lender, like a bank or a credit union, and an alternative online lender. Although traditional lenders typically provide lower interest rates, their credit and documentation requirements are more demanding. For business owners with good credit, more years in business, and higher monthly revenues, a line of credit from a bank would be a better bet. However, for newer business with lower monthly revenues or lower credit scores, revolving credit from an alternative lender would be the better choice.

Additionally, alternative lenders may work with you to increase your credit line and adjust your payment schedule once they’ve had time to become familiar with your payment history.

How do I apply for a business line of credit?

Once you’ve decided that a business line of credit is the right financial product for your company, simply fill out a single, free LendRev application. Your application will immediately go out to our lending network, and your personal funding coordinator will contact you to help you complete the process and answer any questions you might have.

When evaluating your application, our lenders will take the following into consideration.

Years in Business

The longer your company has been in business, the better terms you’ll be able to receive for your line of credit. This doesn’t mean younger companies will be left out in the rain. It just means they might have to meet additional requirements and/or pay higher interest rates.

Personal Credit Score

While your personal credit score will have a major impact on your ability to secure a line of credit from a bank, online lenders are more flexible when it comes to your score. As with any funding product, the better your credit score, the lower your interest rate will be.

Annual Revenue

Any lender will want to know if you have revenue sufficient to meet your financial obligations, particularly your ability to make payments on your line of credit. They’ll use your revenue information to determine terms and the extent of credit they’re willing to extend.

Average Bank Balance

Your business’s average bank balance helps lenders determine if your business is profitable, how prepared you are for unexpected expenses, and if you have a healthy cash flow.

When is the best time to apply for a business line of credit?

As with most things in life, timing is important when considering when to apply for a line of credit for your business. Waiting until the timing is right can save you money on interest and help secure a higher credit limit.

Apply before you need the funds.

Although it may sound counter-intuitive, the best time to apply for a business line of credit is before you actually need it. Because one of the main advantages of having an LOC is the flexibility to respond quickly to unexpected expenses, you want to have your safety net in place before you need to fall back on it.

Take advantage of spikes in revenue.

Applying while your revenues are up makes your application more appealing to lenders. The more financially fit your business is at the time of your application, the better your terms will be.

Know your credit score.

Likewise, it’s also important to know your credit score before applying. This will give you to opportunity to evaluate other forms of revolving credit you may have and make a plan to pay them down. If there are any errors, file a dispute and apply once the matter has been removed from your credit report. Improving your credit score can take time, which is further motivation to start the application process before you actually need the funds.

How do I repay a business line of credit?

A business line of credit and a business credit card have similar repayment processes, with the exception that an LOC is not available indefinitely. Terms for a line of credit typically range from six months to five years. Although you can choose to pay off your outstanding balance at any time, thus saving on interest, the balance, including interest, must be paid in full when the term ends.

When should I tap into my business line of credit?

A business line of credit, like any form of revolving credit, should be used responsibly. An LOC is not the right product for your company if your intended purpose is to use the funds for large capital investments, like purchasing real estate or doubling the capacity of your production line. It’s also not the right product if the funds would be used to cover normal operating expenses.

Funds from an LOC should be used to respond to time-sensitive or emergency situations. For instance, if you have an outstanding invoice on a large order, you could pull funds from your LOC to cover payroll. If an essential piece of equipment breaks down, your line of credit could be used to cover the repairs.

When accessing funds from your LOC, keep in mind that the way you use and repay those funds will have an impact on your credit score and your ability to access capital in the future.

* In order to secure funding, LendRev requires at least three months in business with a minimum of $10,000 in monthly revenue.

† With the appropriate information and documentation available, it’s possible to have your application approved in as little as one hour.

‡ Many of our term loan and merchant cash advance providers can be very fast, providing funds in as little as 24 hours. SBA-backed lenders may take two weeks or more because Small Business Administration loans require significantly more documentation.