Business Lines of Credit
Access flexible, revolving credit facilities through our network of traditional banking partners. Draw funds when you need them, pay interest only on what you use, and revolve your credit line as you repay\u2014giving your business the working capital cushion it deserves.
A business line of credit is revolving capital you draw from as needed, paying interest only on what you use. Growth Fund Partners arranges $25K to $1M lines priced at Prime plus a margin, with funds that replenish as you repay — ideal for cash flow, payroll, inventory, and seizing time-sensitive opportunities.
How a business line of credit works
A business line of credit is revolving capital\u2014think of it as a pool of funds your company can draw from as needed. You only pay interest on the amount you actually use, and as you repay, the full limit becomes available again. Unlike a term loan, you do not reapply each time you need capital.
Underwriting evaluates your business\u2019s cash flow, revenue trends, and credit history to set a limit and pricing. Rates are typically set at Prime plus a margin, and the line is renewable annually. Most lines are unsecured for established businesses, though secured lines backed by accounts receivable or inventory can offer higher limits.
Growth Fund Partners arranges lines from $25,000 to $1 million through our bank network. We match your business to the banking partner with the best rate, terms, and relationship fit\u2014then handle the packaging and negotiation so you are not shopping from bank to bank.
When a line of credit is the right tool
Lines of credit shine when your capital needs are ongoing, seasonal, or unpredictable. If you know the exact amount and purpose, a term loan is usually cheaper. For everything else, a line gives you standby access without paying for money you are not using:
- Cash flow management. Smooth out the gap between when you bill clients and when they pay.
- Payroll coverage. Meet payroll during slow periods or long payment cycles without touching reserves.
- Inventory and seasonal stocking. Buy inventory ahead of a busy season and repay as sales come in.
- Unexpected expenses. Cover equipment repairs, emergency maintenance, or unplanned costs without scrambling for financing.
- Seizing opportunities. Act quickly on vendor discounts, last-minute inventory deals, or competitive bids.
A quick example
A staffing agency with $3 million in annual revenue carries a $200,000 line of credit. Each month it draws $50,000 to $80,000 to cover payroll while waiting on client invoices (net-30 to net-60). When payments arrive, the draw is repaid and the line resets. The agency pays interest only on the drawn balance\u2014often less than $500 a month\u2014and has standby capital available 365 days a year without reapplying.
Line of Credit Programs
Revolving credit facilities \u2014 secured, unsecured, and asset-based options to match your business.
Secured Business Line of Credit
Lower-Rate Revolving Credit Backed by Business Assets
Unsecured Business Line of Credit
Flexible Revolving Credit Without Collateral
Asset-Based Lending (ABL)
Revolving Credit That Scales with Your Assets
Rates & Terms
Transparent, current terms for this program. Final pricing depends on the deal, collateral, and borrower profile.
| Credit limit | $25,000 – $1,000,000 |
|---|---|
| Interest rate | Prime + margin (Prime is 6.75%, July 2026) |
| Structure | Revolving — draw and repay |
| Interest charged | Only on the amount drawn |
| Term | Renewable annually |
| Access | Funds available within days of approval |
Line of Credit vs. Term Loan
| Feature | Line of Credit | Term Loan |
|---|---|---|
| Structure | Revolving credit limit | One-time lump sum |
| Payment | Interest on drawn balance | Fixed monthly |
| Reusable | Yes, as you repay | No |
| Rate | Variable (Prime + margin) | Fixed from 6% |
| Best for | Ongoing & seasonal needs | Planned, large purchases |
| Interest when unused | None | Full balance accrues |
Process & Timeline
A straightforward path from first conversation to funded — with no surprises along the way.
Submit your application (Day 1)
Provide your application along with bank statements, recent financials, and a brief overview of anticipated use.
Financial review (Day 1–3)
We evaluate cash flow, revenue trends, and credit to determine your limit and pricing.
Bank partner match (Day 3–5)
We match your profile to the right banking partner in our network and negotiate terms on your behalf.
Approval & line setup (Day 5–10)
Your revolving line is established with clear draw procedures. No reapplication needed each time you draw.
Draw anytime (Day 10+)
Access funds on demand — online, by phone, or through your bank portal — and repay at your pace.
Sources & Market Data
- Banks reported continued tightening of C&I lending standards for small firms in Q4 2025, making a standby credit line more valuable. Federal Reserve, Senior Loan Officer Opinion Survey (SLOOS) (January 2026).
- In the 2025 Small Business Credit Survey, 38% of employer firms applied for a loan, line of credit, or cash advance. Federal Reserve Banks, 2026 Report on Employer Firms (Small Business Credit Survey) (2026).
What to watch out for
A line of credit is revolving, which means it is easy to treat as a permanent extension of cash flow. Resist the urge to stay drawn to the limit. Lenders review utilization at renewal, and a line that never revolves down looks like dependency\u2014not strategic use. Keep utilization below 70 to 80 percent for the healthiest lender relationship.
Variable rates mean your cost of capital rises when the Prime rate rises. Budget for interest expense at a rate 1 to 2 points above today\u2019s level so you are not caught off guard if rates increase before your next renewal.
Finally, understand the covenants. Some bank lines require maintaining a minimum cash balance, a debt-service coverage ratio above a certain threshold, or periodic financial reporting. Missing a covenant can trigger a freeze or reduction of your line. For a deeper comparison of revolving vs. fixed financing, read our line of credit vs. term loan guide.
Frequently Asked Questions
Straight answers to the questions borrowers ask us most.
A business line of credit gives you a revolving credit limit — from $25,000 to $1 million — that you draw from as needed. You only pay interest on what you use, and as you repay, funds become available again, much like a business credit card.
Most business lines of credit require a credit score around 660 or higher, plus consistent revenue and time in business. Because the line is flexible and often unsecured, lenders weigh your credit and cash flow closely when setting your limit and rate.
A line of credit is ideal for managing cash flow, covering payroll, buying inventory, handling seasonal gaps, or funding unexpected expenses. Its revolving nature makes it perfect for short-term, recurring needs rather than large one-time purchases, which better suit a term loan.
Line of credit rates are typically set at Prime plus a margin based on your credit, revenue, and business history. You are charged interest only on the balance you actually draw, so carrying a zero balance means no interest cost until you use the funds.
Choose a line of credit for flexible, ongoing needs where you draw and repay repeatedly, like managing cash flow. Choose a term loan for a specific, large purchase repaid on a fixed schedule. Many businesses keep a line of credit available alongside a term loan.
Once approved, you can typically access your line of credit within a few business days, then draw funds instantly whenever you need them. This standby access makes it a valuable safety net for seizing opportunities or covering surprises without reapplying each time.
Ready to Secure Your Line of Credit?
Let us connect you with the right banking partner for a revolving credit facility tailored to your business.