Business line of credit
Business Line of Credit: Draw What You Need, When You Need It
A revolving credit limit of $10,000 to $2 million you draw against, repay and draw again — paying only on what you use. Approvals in hours on three months of bank statements, funding in 48 to 72 hours, and a line that sits ready for the next gap. RAN Funding places it with the lender that fits your revenue and credit.
What Is a Business Line of Credit?
A business line of credit is a revolving credit limit your business can draw from at any time, up to the limit, and repay on a schedule — and as you repay, the available credit comes back. Unlike a term loan you receive once and repay in full, a line is standing liquidity: draw $20,000 for inventory this month, repay it over the next few, draw again for payroll in the slow season. Through our lender network, lines run from $10,000 to $2 million with 6-to-36-month repayment on each draw, interest or fees only on the amount drawn, and renewals that grow the limit as the business performs. Typical qualification: one year in business, $250,000+ annual revenue and a 650+ credit score, with approvals in hours on three months of bank statements and funding in 48 to 72 hours.
More Flexibility Than a Fixed Loan
A term loan answers one question: how much do you need today? A line of credit answers the question that actually runs a business: how much might you need between now and next year? You draw when the need arrives, repay as the cash comes in, and keep the limit open for the next one — without applying again.
We place lines with lenders that underwrite on bank deposits rather than tax returns, so the limit tracks your real revenue, and we tell you up front when a term loan or equipment financing is the better tool for a one-time purchase.
What to Have Ready Before You Apply
Documents Required
- 3 months of business bank statements (4 in NY, CA or VA)
- Government-issued ID
- Business bank account with regular deposits
- Short online application
- Tax returns only on larger limits
Typical Screening Criteria
- Time in business: 1+ year
- Annual revenue: $250,000+ ($20,000+ a month)
- Credit score: 650+ (some programs 600+)
- No open bankruptcies
- Manageable existing short-term debt
Ready to See Your Options?
No obligation and a soft inquiry to check. A funding specialist comes back with the offers you qualify for.
The Complete Guide to Business Lines of Credit in 2026
How a Business Line of Credit Works
- Approval sets a limit — say $150,000 — based on your deposits, revenue and credit.
- You draw what you need, when you need it: $25,000 today, nothing for two months, $40,000 in the busy season.
- Each draw repays on its own schedule, typically 6 to 36 months, weekly or monthly, with interest or a fee only on that draw.
- As you repay, the limit replenishes. Pay $25,000 back and $25,000 is available again.
- Renewal. Lenders review the line every 6 to 12 months and usually raise the limit for businesses that have drawn and repaid cleanly.
A $150,000 line over a year: drawn, repaid, available
Illustrative. You pay on the drawn balance only; the undrawn limit costs nothing on most programs.
Mechanics in detail: how a business line of credit works.
Types of Business Lines of Credit
| Type | Limit | Who offers it | Best for |
|---|---|---|---|
| Unsecured revenue-based line | $10K–$250K | Online and non-bank lenders | Speed; approved on bank deposits in hours |
| Secured business line | $50K–$2M | Non-bank and bank lenders | Larger limits, lower cost; secured by receivables, inventory or equipment |
| Bank line of credit | $50K–$1M+ | Banks | 700+ credit, 2+ years, full financials; cheapest, slowest |
| SBA Express / CAPLines | Up to $500K / $5M | SBA lenders | Long-term revolving line with a government guarantee; 2–4 weeks |
| Asset-based line | $250K–$10M | Specialty lenders | Borrowing against receivables and inventory at scale |
See secured vs unsecured business lines of credit and SBA Express lines.
What a Business Line of Credit Costs
Pricing depends on the type. Bank and SBA lines are priced as Prime plus a margin (roughly 8.5% to 13% at today’s 7.00% Prime). Non-bank revenue-based lines are priced as a weekly or monthly fee on the drawn balance, which can translate to 15% to 40%+ APR depending on how fast you repay — cheaper than a merchant cash advance, more than a bank. Most charge no fee on the undrawn limit; some charge a draw fee of 1–3% or a monthly maintenance fee. Always compare the total cost of a typical draw, not the headline rate.
| $50,000 draw repaid over 12 months | Approx. monthly cost | Approx. total cost |
|---|---|---|
| Bank line, Prime + 2% (9%) | $4,373 | $2,475 |
| Non-bank line, ~20% APR | $4,632 | $5,580 |
| Non-bank line, ~35% APR | $4,990 | $9,880 |
| Merchant cash advance, 1.30 factor | $5,417 | $15,000 |
Details and current numbers: business line of credit rates in 2026.
Who Qualifies
| Typical non-bank line | Bank line | SBA Express | |
|---|---|---|---|
| Time in business | 1+ year | 2+ years | 2+ years |
| Annual revenue | $250,000+ | $250,000+ | Covers the payment at 1.15x+ |
| Credit score | 650+ (600+ on some programs) | 700+ | 680+ |
| Documents | 3 months of bank statements | 2 years of returns and financials | Tax returns, financials, SBA forms |
| Time to fund | 48–72 hours | 2–4 weeks | 2–4 weeks |
Full checklist: business line of credit requirements. Credit under 650: business line of credit with bad credit. How limits are set: how much of a line can I get?
What Owners Use a Line For
- Inventory ahead of a season — draw in September, repay from Q4 sales.
- Payroll and rent while receivables land — the 30-to-60-day gap on B2B invoices.
- A large order or contract that needs materials before the deposit arrives.
- Emergency repairs and replacements that cannot wait for a loan.
- Standby liquidity — a limit you never draw is still worth having before the slow month.
When a line is the wrong tool: a single large purchase you will repay over years (use a term loan or equipment financing), or a business that would use the line to cover ongoing losses. See how to use a business line of credit.
Line of Credit vs Term Loan vs Credit Card
| Business line of credit | Business term loan | Business credit card | |
|---|---|---|---|
| Structure | Revolving; draw and repay | One lump sum; fixed payments | Revolving; monthly statement |
| Limit | $10K–$2M | $20K–$2M | $5K–$100K |
| Cost | Pay on what you draw | Interest on the whole amount | 20–30% APR after any 0% period |
| Cash access | Yes | Yes | Cash advances only, at a fee |
| Best for | Recurring gaps, standby | One-time purchase or project | Small everyday spend, rewards |
Detailed comparisons: term loan vs line of credit, working capital loan vs line of credit, business loan vs business credit card.
How Fast It Funds
Non-bank lines: approval in hours on a complete application and three months of statements, funding of the first draw in 48 to 72 hours, subsequent draws same or next day from the lender’s portal. Bank lines: two to four weeks. SBA Express: two to four weeks. See fast business lines of credit.
Standing Liquidity for Businesses That Earn in Cycles
Most of the businesses we fund have a season, a slow month, or customers who pay late. A line of credit is the product built for that: approved once, drawn when needed, repaid when the cash lands.
- Approved on deposits, not tax returns. Three months of statements.
- Limits that grow. Renewals raise the line for businesses that draw and repay cleanly.
- One specialist. Who tells you when a term loan or equipment deal is the better fit.
Go Deeper on Business Lines of Credit
Every question we get about lines of credit, answered in depth.
What Happens After You Apply With RAN Funding
Your application is handled in house. One RAN Funding specialist reads your statements the same day, presents the file to the best-matched funders in our network for the best deal (not to a list of a hundred), brings the approvals back and compares total payback, payment and term with you. Your information is not resold as a lead, and you are not contacted by lenders you never chose; you hear from one person, in English or Spanish, from the first call through funding and renewal.
- One application, one soft pull, three months of bank statements.
- One specialist, not a call list.
- Offers side by side with total payback before you decide.
- Business financing only: working capital, lines of credit, term loans, equipment, receivables and SBA.
How this differs from a loan marketplace is laid out in RAN Funding vs. Lendio, Fundera and LendingTree.
Business Line of Credit Questions, Answered
What credit score do you need for a business line of credit?
Most non-bank lines start at 650; some programs go to 600 with strong deposits. Bank lines typically want 700+, and SBA Express lines 680+. RAN Funding screens lines at 650+, one year in business and $250,000+ annual revenue.
How much of a line of credit can my business get?
Limits are usually set at 10% to 20% of annual revenue on non-bank lines, so a $600,000 business sees $60,000 to $120,000 to start, growing at renewal. Bank and secured lines can go higher against receivables, inventory or equipment. Through RAN Funding, $10,000 to $2 million.
Do I pay interest on the whole line?
No. You pay interest or fees only on the amount you have drawn. Most lines charge nothing on the undrawn limit, though some carry a draw fee or monthly maintenance fee.
How fast can I get a business line of credit?
Non-bank lines are approved in hours on three months of bank statements and fund the first draw in 48 to 72 hours. Later draws are same or next day. Bank and SBA lines take two to four weeks.
Is a line of credit better than a term loan?
For recurring or unpredictable needs, yes: you pay only for what you use and keep the limit open. For a single large purchase repaid over years, a term loan or equipment financing is cheaper and simpler.
Can I get a business line of credit with bad credit?
Yes, on programs underwritten on deposits rather than score, usually with smaller limits, shorter draw terms and higher cost. A year of clean draws and repayments typically re-prices the line.
Does a business line of credit affect my personal credit?
Most require a personal guarantee and a soft or hard pull at application; some report to business bureaus only, some to both. Ask the lender what it reports.
Is RAN Funding the lender?
No. RAN Funding is a broker. We place lines of credit with lenders in our network, matched to your revenue, credit and industry, and we tell you when another product fits better.
RAN Funding is a business financing broker, not a lender. Lines of credit are originated by lenders in our network; limits, rates, fees, draw terms, approval and funding times vary by lender and applicant. Figures on this page are typical program parameters as of October 2026 and are not an offer of credit. Reviewed 14 October 2026.
Not Quite Right? Compare the Alternatives
Lines of Credit by State and Situation
Need $500,000 to $2 Million?
Larger requests are reviewed differently: more documents, a closer look at cash flow and a smaller group of lenders. Through RAN Funding, established businesses can access up to $2 million funded in as little as 72 hours once approved, and up to $5 million through SBA loans. Start with the guide for your amount.