Business line of credit: plain-English answers
A business LOC is the flexible middle ground — draw when you need it, pay interest only on what's drawn. Here's how they actually work, what it takes to qualify, and how they affect your credit.
What is a business line of credit?
A revolving credit limit you draw from as needed — you only pay interest on what's drawn.
Business line of credit vs MCA: which is cheaper?
A LOC is materially cheaper, but slower to approve and tighter on credit. MCA wins on speed.
How do I get a business line of credit?
12+ months in business, $100k+ annual revenue, 600+ FICO for most online LOCs. Banks want more.
Does a business line of credit affect my credit?
It can. Bank LOCs often report to personal credit; online LOCs report to business bureaus. Depends on the lender.