Lines of Credit (LOC)

Lines of Credit (Bank LOC)

Flexible revolving credit for established businesses that need short-term working capital, cash flow support, inventory purchases, payroll support, or operating capital.

Program Rates & Terms

• Structure: Revolving line of credit
• Estimated Rate: 6% to 15% variable
• Term: Typical 1-year renewal
• Use of Funds: Short-term working capital and operating needs
• Collateral: May require a blanket lien depending on lender and borrower profile

Qualification Guidelines

• Credit: 680+ preferred
• Time in Business: 2+ years preferred
• Revenue: $250,000+ annually preferred
• Financial Strength: Clean books, steady revenue, and strong bank activity improve approval odds

Required Documents

• Business tax returns
• Business financial statements
• Recent business bank statements
• Completed application

Best Fit For

• Short-term working capital
• Inventory purchases
• Payroll support
• Cash flow gaps
• Seasonal business needs
• Emergency operating capital
• Established businesses with recurring capital needs

Key Insight

A bank line of credit is best used as flexible short-term working capital. Unlike a term loan, a line of credit allows qualified businesses to draw funds as needed, repay, and reuse available credit during the active credit period.