What is a business line of credit?
A business line of credit is revolving funding. A lender approves you for a credit limit, and you draw from it as often as you need, up to that limit. When you repay what you borrowed, that amount becomes available again, so you do not have to reapply each time you need cash.
Unlike a term loan, which pays one lump sum on day one, a line of credit lets you borrow in smaller amounts exactly when the need arises. That makes it an ideal cash flow cushion for South Florida businesses that deal with seasonal swings, slow paying clients or sudden opportunities.
How it works
- Apply once with your business and financial details.
- Get matched with lenders and funding partners in our network.
- Draw when needed from your approved limit as expenses come up.
- Repay and reuse. As you pay down the balance, available credit is restored.
Types of business lines of credit
- Revolving: available credit refills as you repay. The most common type, built for ongoing needs.
- Non-revolving: borrow up to a set amount once, then the line closes after repayment. Good for one planned need.
- Secured: backed by collateral such as equipment, inventory or receivables, which can mean a higher limit or lower rate.
- Unsecured: no specific collateral pledged. Often faster to set up, usually with a higher rate or lower limit.
Line of credit vs. term loan
| Line of credit | Term loan | |
|---|---|---|
| How you get funds | Draw as needed, up to your limit | One lump sum up front |
| Interest charged on | The amount you draw | The full loan amount |
| Repayment | Based on what you have drawn | Fixed payments over a set term |
| Reusable | Yes, on revolving lines | No, you reapply for new funding |
| Best for | Ongoing needs and cash flow gaps | A single known expense |
Popular uses in Miami
- Covering payroll in the slow summer months
- Restocking inventory quickly before season or a holiday rush
- Paying suppliers while waiting on customer invoices
- Handling unexpected repairs or storm related costs
- Taking advantage of bulk purchase discounts
- Funding marketing and growth opportunities
Understand the costs
The main cost is interest on the funds you draw. Depending on the lender there may also be an origination fee, draw fee, maintenance or annual fee, or late fees. Rates can be fixed or variable. We point out every fee in each offer so you know the full cost before you sign.
What you may need
- Basic business and contact information
- Recent business bank statements
- Monthly or annual revenue figures
- Time in business and ownership details
- Tax returns or financial statements for larger lines