Unsecured Business Line of Credit
Lines of credit for small businesses. No hard credit checks. Get up to $150,000 limit approved in as little as 24 hours.
Funding Amounts
$5,000 to $300,000
Funding Time
24 hours
Interest Rate
5% upwards
Repayment Terms
6-18 Months
The Easier Path to Get a Credit Line to Handle Dips in Cash Flow
Don’t let cash flow slow you down. Poor credit accepted. Minimal paperwork. Get the access to funding your business needs to succeed and help you handle dips in cash flow.
Fast Funding
Get pre-approved for a credit line in 60 seconds.
Minimal Paperwork
Just upload your last 3 months of business bank account statements.
No Collateral Required
No other collateral is required to get a credit line.
Poor Credit Accepted
We can still offer credit lines even if you have poor credit.
How To Get A Business Line of Credit from Business Finance Source™
Loan Application Process
1
Apply Online
Our platform evaluates your loan application and gives you an initial decision in 60 seconds.
2
Upload Bank Statements
Once you’re pre-approved, upload the last 3 months of your bank statements to get final approval.
3
Get Funded
After final loan approval, get the funds deposited into your bank account in as little as 24 hours.
Eligibility Requirements
At Business Source, you must meet the following minimum requirements to qualify for a business line of credit financing:
Be in business for 6 months or more
Provide 3 Months Bank Statements
Have an active Business Bank Account
Business must make +$7,500 per month
Who can apply?
You can apply for finance with Business Finance Source if you’re a US citizen or resident over the age of 18 years of age.
Business Line Of Credit Explained
What Is It?
Businesses often require short-term funding to cover daily expenses until they receive payment from clients or invoices are paid.
A business line of credit allows a business to borrow funds up to a certain limit. The lender agrees to provide access to the agreed-upon sum of money, and the business can choose to borrow any amount from the credit line as needed. The business only pays interest on the amount borrowed, not the full credit limit.
A business line of credit can provide a financial cushion for businesses with unpredictable cash flow and gives the business the ability to borrow only what they need.
This type of funding helps businesses to maintain cash flow and keep their operations running smoothly.
How Does It Work?
- The business owner submits an application for a business line of credit and provides the lender with some basic information about the business.
- The lender assesses the business’s credit history and financial standing before deciding whether to grant approval for the line of credit (LOC).
- Once the line of credit is approved, the business can access the funds as needed throughout the month to pay for business-related expenses.
- At the end of the month, the business repays the line of credit, only paying for the interest and the funds that were utilized.
Interest Rates
In the United States, the rates for business line of credit can vary greatly among lenders and may range from 4% to 45% or higher.
Repayment Terms
Repayment Period: Business line of credit must be repaid at the end of each month.
Repayment Frequency: Businesses are required to clear their line of credit each month. Failure to do so may result in large interest charges and late fees.
Repayment Amount: The borrower is required to pay back the portion of the line of credit that was used during the month, as well as the interest on that amount. Some lenders may also charge a fixed monthly fee for providing a line of credit.
Business Line of Credit Calculator
Use this calculator to estimate the repayment interest and schedule for a business line of credit.
Access all our business loan calculators.
What Can It Be Used For?
Business Line of Credit are designed to cover short-term business expenses, such as utility bills, advertising and marketing expenses, insurance premiums, legal and accounting fees, and unexpected costs like equipment repairs and emergency expenses. If you need funding for medium-term or long-term business purchases, you may want to consider alternative small business financing options.
Benefits And Drawbacks
Benefits
- Provides a financial buffer for a business, allowing instant access to a fixed lump sum of funds in case of unexpected expenses
- Offers lower interest rates compared to other forms of financing such as business credit card overdrafts
Drawbacks
- Some lenders may require collateral, such as business or personal assets, to secure the line of credit
- If the line of credit is not paid back by the agreed upon date each month, large fees and charges may be imposed by the lender
- Qualification may be difficult for businesses with poor credit, limited financial history, or insufficient cash flow
FAQs
If a borrower misses a repayment on a line of credit, the lender will charge a late fee, which is usually a percentage of the missed payment, plus a standard processing fee on top of the payment that is past due.
Defaulting on an unsecured loan means that the lender has no collateral or assets to seize as part of the loan agreement. The only other recourse for the lender to recover the loan would be to file a lawsuit or send the loan to a collections agency.
To determine a line of credit limit for a business, banks evaluate the business’s credit history, monthly revenue, and other financial obligations. They use this information to assess the business’s ability to repay the credit and determine whether they can offer a line of credit and what the maximum limit might be.
It is possible to get a business line of credit using your EIN number instead of a SSN number. However, many lenders will still ask for a SSN as part of the application process, as they may require a personal guarantee to secure the credit. This means that even if you are using your EIN to apply for the credit, your personal credit history and financial standing may still be taken into consideration when evaluating your application.
There are many banks in the U.S. that offer business line of credit to established businesses. Some examples of these banks include Bank of America, Wells Fargo, Citibank, JPMorgan Chase, Capital One, US Bank, PNC Bank, and TD Bank. Keep in mind that most banks only give business line of credit to businesses that have been in operation for at least two years, so it’s important to do your research and find out the specific requirements before applying at one of these banks.
A business line of credit can have an impact on your personal credit score. This is because many lenders require a personal guarantee to secure a business line of credit. If you fail to pay back the line of credit, it could negatively affect your personal credit history.
Apply For Business Line of Credit Now
Borrow between $5,000 and $850,000. The application process is 100% online, with an initial decision in just 60 seconds and applying won’t your credit score.