What it is
A business line of credit is revolving: you draw for payroll or materials, repay, and draw again up to your limit. It is often easier to open before a crunch than in the middle of one.
Who it fits
- Retailers with seasonal inventory cycles.
- Agencies covering payroll between client payments.
- Field businesses covering fuel or materials between settlements.
What many lenders look for
- Many lenders want ~1+ year in business and business checking history.
- LLCs and corporations are common; sole props may have fewer options.
- Many cite ~600–625+ credit and stable deposits.
Pros
- Flexibility for recurring gaps.
- Interest only on outstanding balance on true LOCs.
Cons
- Lenders can reduce limits in downturns.
- Variable rates change your cost.
Questions to ask any provider
- Is this a true revolving LOC or a series of short-term draws?
- How often is the line reviewed?
Compare other options
FAQ
- When should I apply?
- When revenue is steady — not the week payroll bounces.