A business line of credit is a flexible form of small business funding. Unlike a term loan, which disburses the money in one lump-sum payment, a business line of credit typically works more like a credit card.
You can use it to borrow money up to a certain limit. You’ll only pay interest on the amount that you’ve borrowed, and you can borrow against your limit again once you’ve paid down your balance.
Typically, most financial institutions require you to be in business for at least two years before extending you a line of credit. However, our picks for best business line of credit for new businesses have shorter time in business requirements.