A business line of credit (LOC) gives you access to funds up to your credit limit which can be borrowed and paid back multiple times while only paying interest on the money you borrow. This is a flexible and typically unsecured way to borrow money for seasonal businesses or businesses that need help managing cash flow or handling unexpected expenses.
Pros:
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Flexible borrowing
- You only pay interest on the amount you draw from the LOC
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Typically no collateral required for unsecured business LOC
- Can get approved within 48 hours
Cons:
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May have maintenance fee or withdrawal fee
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Good credit and consistent revenue required
- Collateral will be required for secured LOC option
Best for:
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Short term needs
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Seasonal business to manage cash flow
