Access a Business Line of Credit Built for Flexibility

A business line of credit is a flexible financing product that gives your business access to a pre-approved amount of capital you can draw from as needed. Unlike a traditional loan that deposits a lump sum into your business bank account, a line of credit works more like a business credit card: you're approved for a total credit limit, you draw only what you need, and you only pay interest on the amount you've actually used.

As you repay what you've drawn, that capital becomes available again — which is why it's called revolving credit. Most business lines of credit range from $10,000 to $500,000, with terms that renew annually based on continued business performance.

Once approved, you receive a credit limit and access to a portal or account where you can draw funds on demand. You can take a single draw, multiple draws, or let the line sit unused — there's no obligation to use it. When you draw funds, they typically deposit in your business bank account within 1 business day.

Interest accrues only on the drawn amount, and you make payments on that balance over a set repayment period (often 12 to 24 months per draw) or can pay back quicker to pay less interest. As you pay down the balance, your available credit replenishes, and you can draw again without reapplying. This revolving structure is what makes a line of credit fundamentally different from a term loan.

A term loan delivers a one-time lump sum that you repay on a fixed payment schedule — you pay interest on the entire loan amount, whether you use the funds immediately or not. A line of credit gives you access to capital you can draw on flexibly, paying interest only on what you actually use.

Term loans make sense for a single, known expense — buying equipment, funding a specific project, or acquiring a business. Lines of credit make sense for ongoing or unpredictable capital needs — bridging receivables, covering payroll during seasonal dips, funding inventory before a busy quarter, or simply having capital available for opportunities you can't predict. Many businesses carry both: a term loan for a specific growth investment and a line of credit for working capital and cash flow needs.

Credit limits typically range from $10,000 to $500,000 or higher for established businesses with strong financials. Through LimeLyne's lender network, businesses most commonly receive limits between $25,000 and $250,000.

The limit you qualify for depends on your time in business, average monthly revenue, business bank account balances, credit profile, and industry. A general benchmark: lenders often approve credit lines of approximately 10%–15% of your annual revenue, though AI underwriting enables our lender network to approve higher limits for businesses with strong cash flow consistency, healthy deposit patterns, or collateral.

The honest answer — and one many marketplaces won't give you — is that most business line of credit lenders require a personal credit score of 650+, with a handful approving down to 600. If you see marketplaces advertising "business line of credit from 550 credit," they're generally quoting minimum credit requirements across working capital products. Working capital loans have more flexible credit requirements, with many lenders approving scores in the 500s when business revenue is strong, but the trade-off is higher APR, shorter terms, and no revolving access to capital.

LimeLyne's approach is to match your actual profile to the right product. If your credit is 650+, our lender network competes for your line of credit application. If your credit is below 600, we'll tell you plainly that a line of credit isn't available — and match you to working capital options that make sense for your business instead. You'll always know what product you're being approved for, what to expect, and how it compares.

They serve different purposes and most growing businesses use both. A business credit card is ideal for daily operating expenses — software subscriptions, travel, vendor payments — and typically earns rewards. Limits usually top out around $50,000 for most businesses.

A line of credit is built for larger capital needs — inventory purchases, payroll coverage, receivables gaps, equipment, or opportunistic spending. Limits extend to $500,000+ and interest rates are generally lower than credit card APRs. The other meaningful difference: you can transfer line of credit funds directly to your business bank account, which most credit cards can't do without a costly cash advance fee.

For most businesses, the right answer is a credit card for expenses you'd naturally charge and a line of credit for capital deployment.