Business Line of Credit Reviews

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  • StreetShares Review

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    Highlights P2P lender Term loans Lines of credit Weekly repayments Veteran friendly No prepayment penalty No maintenance fees Excellent customer service Overview StreetShares is a P2P lender that offers traditional business term loans and lines of credit. If you’re familiar with lenders like Lending Club or Prosper, you’ve got the basic idea of how this company works, […]

  • P2Binvestor Review

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    Highlights Asset-backed lines of credit No draw fees No maintenance fees No lockbox fees Fast time to funding Transparent service Overview P2Binvestor, known as P2Bi for short, is a peer-to-peer lender that offers asset-backed lines of credit to qualified B2B businesses. The company was founded in 2012, before opening its doors to customers in 2014. […]

  • Lending Club Review

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    Highlights Personal loans used for business Business loans Business lines of credit Long loan terms Monthly repayments No prepayment penalties Great customer service Overview In terms of internet time, Lending Club is old news. This peer-to-peer (P2P) lender was founded in 2006; you know, all the way back when Facebook and YouTube were new things, and Instagram was […]

  • OnDeck Review

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    Highlights Term loans Lines of credit Working capital loans Business expansion loans Fast time to funding Proactive customer service Overview OnDeck is a hugely prolific online lender. Founded back in 2007, OnDeck became one of the first lenders to rely primarily on technology to make their lending decisions. With their algorithms, decisions that used to take days […]

  • American Express Merchant Financing Review

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    Highlights Term loans Settlement advances Working capital loans Fast application process Low APRs Excellent customer service Overview Founded in 2011, American Express Merchant Financing is Amex’s contribution to the world of online lending. The company offers term loans with lengths of one- or two-years and settlement advances that are dispersed and repaid on a monthly basis. […]

  • BlueVine Review

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    Highlights Invoice factoring Lines of credit Low entry qualifications No maintenance fees No lockbox fees No long-term contracts Fast time to funding Excellent customer service Overview BlueVine, an online lending service, was founded in 2013 after the founder watched his father, a physical therapist, struggle with inconsistent cash flow due to slow payouts by insurance companies. It […]

  • Fundbox Review

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    Highlights Invoice financing Young business friendly Low entry qualifications No origination fee No maintenance fee No lock box fee No prepayment penalty Fast time to funding Overview If your business processes invoices, you likely wish that you didn’t have to. You’ve probably been in a few situations where you need money now, but your customers aren’t paying up. Or […]

  • Kabbage Review

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    Highlights: Lines of credit Monthly repayments Quick application time Quick access to cash No extra fees Good customer service Overview Founded in 2009, Kabbage is an online lender that offers lines of credit to eligible businesses. Originally, the company only worked with online retailers, but they’ve expanded their reach to service brick-and-mortar businesses as well. It would be […]

  • Headway Capital Review

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    Highlights Lines of credit Low borrower qualifications Weekly or monthly repayments No maintenance fees No prepayment penalty Fast time to funding Friendly customer service Overview Headway Capital is part of Enova International, a financial services company. The parent company owns a number of lending services around the world, including two others in the United States: CashNetUSA, […]

  • Rapid Advance Review

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    Highlights Merchant cash advances Short term loans Daily repayments Credit rating deemphasized 4 – 18 month term lengths Fast application and processing No collateral Overview Rapid Advance is a Maryland-based non-traditional small business funder. It offers merchant cash advances (MCAs) and short-term business loans to small businesses seeking short-term funding. Unlike many of its competitors, it offers […]


What is a Line of Credit?

A line of credit is a business financing arrangement between a funder and a business. Much like a credit card, a line of credit provides businesses with a maximum borrowing amount. The business can draw up to the maximum amount at any time, and it only pays interest and fees on the amount borrowed.

Credit lines are often called revolving lines of credit because, when your outstanding debt is paid down, you will be able to borrow from the full amount again.

For example, you might have a line of credit with a maximum limit of $100,000. You borrow $10,000 and have a repayment term length of six months. At this point, you have access to $90,000. In two months, you borrow another $30,000, so your credit line is down to $60,000 and you have $40,000 in debt (minus what you have already paid). When you repay the money you owe, you will have access to the full $100,000 again.

Some lines of credit are not backed by collateral (or, at least, not specific collateral). However, a common type of line of credit is an asset-backed line of credit. These lines are backed by forms of business revenue such as invoices, inventory, and monthly recurring revenue. The maximum available credit normally corresponds to the value of your assets. Because your loan is backed by collateral, these types of credit lines normally carry lower fees than credit lines that aren’t backed by collateral.

Lines of credit are available from a number of different sources, including online lenders and banks.

Who Should Use a Line of Credit?

Because you do not need to reapply every time you need funds, a line of credit can be useful for a number of scenarios. If your business is in any of these situations, you may want to consider getting a credit line:

  • Your business has inconsistent cash flow
  • You frequently need cash to capitalize on unexpected opportunities
  • You need additional capital, but you don’t know exactly how much
  • You want a financial safety net just in case the need arises