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Business Line of Credit

A revolving line of credit provides a flexible option for business capital, giving you access to funds when you need them and only charging for what you use.

What is a business line of credit?

A business line of credit is a flexible business loan that allows you to borrow up to a certain amount, or credit limit, to cover short-term working capital requirements. When you get a business line of credit, the lender approves you to borrow up to a certain amount of money and you’re able to access some or all of that money as you need it. After you fully pay off a portion you’ve used, the full amount of your line of credit is available for you to use again.

Although business lines of credit do operate very similarly to a credit card, they are not the same thing. Credit cards typically have higher interest rates and in many cases, a line of credit does not have a mandatory monthly payment system.

Which business is ideal for this type of small business financing?

For many businesses, a line of credit is the go-to solution for stabilizing cash flows as borrowers can secure access to funds and then draw at a later time when additional working capital is needed. It’s also a great option for those who need to remain adaptable. After all, small business owners often have a limited window of time to seize the opportunity when it arises. A line of credit allows you to quickly access the funding you need to pursue the initiative.

Because you only pay for what you use, lines of credit are also great emergency funds. That said, a line of credit would not be the right option in certain scenarios, such as trying to open a startup. This is because the total cost of capital is typically lower with a term loan.

Line of Credit vs. Term Loan

The main difference between a term loan and a line of credit is how you receive the money and the repayment terms. Term loans provide a specific sum of money that is repaid over a fixed period of time, otherwise known as the loan term. Lines of credit, on the other hand, provide a revolving account that allows borrowers to draw up to a certain loan amount, repay the amount borrowed, and redraw up to the amount of the credit limit to receive additional funds. Unlike keeping up with the fixed payments of a term loan, you will be required to pay interest on borrowed balance while the credit line remains open. In many cases line of credit, borrowers are required to meet a minimum monthly payment to avoid additional fees or penalties. Some lines of credit are open-ended; the line does not close after a certain period of time as it does with a term loan. Others may close or become inactive after a certain amount of time or period of inactivity.

Loan amount from $5,000 to $100,000

Business Line of Credit Details


  • Only pay interest on the amount you  use, rather than the total amount funded

  • Lines of credit are flexible as long as you stay within your credit limit, making them an ideal solution for stabilizing cash flows and covering essential expenses

  • Great opportunity to build business credit


  • It can be difficult to increase your credit limit

  • Lines of credit often have lower borrowing limits and fees and additional charges can add up if used irresponsibly 

  • Business lines of credit can be more difficult to qualify for than other financing options

Qualifying Criteria 

Approval for a business line of credit from EJN Financial isn’t based on your credit score alone. We focus on the overall health of your business. Here are some factors we consider:

  • 550+ personal credit score

  • 12+ months in business – located in the United States

  • $50,000+ in annual revenue

Documentation Required

We at EJN Financial want to make the funding process as simple as possible for you. Therefore, minimal documentation is needed for your application:

  • Signed one page funding application

  • 3-5 most recent months company bank statements

  • Full credit report

For Startup LOCs​ (Unsecured)

  • 680+ personal credit score

  • Utilization: below 30%

  • No recent bankruptcies 

How To Apply

Pre-Qualify Online

To get prequalified, follow the "Apply Now" button and submit some basic business information.

Get Approved

After your submission has been processed by the underwriting team, we will reach out to discuss the options you qualify for.

Get Funded

Upon approval and accepting the offer, funds are deposited directly into your business bank account so you can use the money immediately.

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