Business Lines of Credit
Access working capital when your business needs it.
A business line of credit gives you access to an approved credit limit that you can draw from as needs arise. Use it to purchase inventory, cover payroll, manage expenses while waiting for customer payments, or pursue a new opportunity.
Simplified Capital helps businesses explore secured bank lines of credit and unsecured revolving options through participating funding sources. We help you compare available limits, repayment schedules, costs and requirements.
Discuss Your Options: 866-810-1305
Secured Bank Lines of Credit: $50,000–$10 Million+
For businesses with qualifying financial strength and collateral, a secured bank line of credit may provide more attractive pricing than an unsecured alternative.
Bank lenders review the business’s cash flow, credit history, existing obligations and collateral. Available limits depend on the complete financial picture, with larger facilities reviewed individually.
The timeline depends partly on how quickly the borrower supplies the required financial documents and how much review the transaction requires. A hard credit inquiry may be required, including during prequalification.
Unsecured Business Lines of Credit: Requests Up to $1 Million
Unsecured options may suit established businesses seeking revolving capital with a potentially faster review process than a traditional bank facility.
Select programs offer:
- Credit limits up to $1 million, on approved credit.
- Pricing starting as low as 1% per month for qualifying borrowers.
- Repayment terms up to 48 months.
- Weekly or monthly payments, depending on the program and qualifications.
- Initial review using a soft credit inquiry through certain programs.
These features vary by provider and are not necessarily available together in one offer. Some programs described as unsecured require a general UCC filing and may require a personal guarantee. Credit inquiries and reporting practices also vary by lender.
How a Revolving Line Works
Suppose your business receives a $100,000 credit limit and draws $20,000. Before any applicable fees or restrictions, you would have $80,000 remaining available.
As you repay principal, availability generally replenishes under the agreement. For example, repaying $5,000 of principal would generally restore that amount for future use, subject to continued eligibility and lender requirements.
Borrowing charges generally apply to funds drawn. Depending on the program, other costs may include origination, draw, annual or maintenance fees.
Put Your Line of Credit to Work
- Purchase inventory or materials before collecting payment.
- Cover payroll and operating expenses during cash flow gaps.
- Manage seasonal changes in revenue.
- Handle unexpected business expenses.
- Take advantage of supplier discounts or growth opportunities.
For a planned equipment purchase or a single funding need, we can also discuss whether equipment financing or another working capital option would be a better fit.
What Do You Need to Qualify?
Businesses generally need at least two years in operation, and some programs require a longer history.
Funding sources may consider:
- Business revenue and cash flow.
- Personal and business credit.
- Recent business bank statements.
- Existing financing obligations.
- Industry, state and business structure.
- Financial statements and tax returns.
- Available collateral for secured facilities.
Requirements differ across providers. Your approved limit will depend on the lender’s assessment of your ability to repay and other program criteria.
Compare the Overall Cost
A low advertised rate is one part of the decision. Payment frequency, repayment period, fees and the way charges are calculated can materially affect the cost and usefulness of a line.
Simplified Capital helps you review the available options. An offer with an origination fee may sometimes provide a better overall result than an offer without one, depending on its other terms.
A monthly rate is not the same as an APR. Review the lender’s disclosures and agreement for the applicable rate, fees, payment schedule and total repayment obligations.
Frequently Asked Questions
Is a line of credit different from a business loan?
A business loan generally provides a single disbursement. A revolving line establishes a limit from which you can make draws, with availability generally restored as principal is repaid, subject to the agreement.
Will applying affect my personal credit?
It depends on the funding source and stage of review. Certain initial matching or prequalification programs use a soft inquiry. Bank facilities and other lenders may require a hard inquiry. Ask about the inquiry requirements before authorizing a credit review.
Does unsecured mean there is no lien or personal guarantee?
Not necessarily. Some programs described as unsecured require a general UCC filing, a personal guarantee, or both. We will help you identify the requirements of the options presented.
Do I pay interest on the entire credit limit?
Borrowing charges generally apply to the amount drawn rather than the unused limit. However, access, maintenance, annual, origination or draw fees may also apply, depending on the lender.
Can I draw again after making payments?
Principal repayments generally restore available credit on a revolving line. Further draws remain subject to the agreement, account standing and continued eligibility. Payments toward interest or fees do not necessarily restore availability.
How quickly can I receive funding?
Some unsecured programs may move faster than a traditional bank facility. Approval and draw funding times depend on the provider, verification requirements, documentation and banking schedules. We can discuss timing after reviewing your request.
Can you consider a larger credit request?
Yes. Secured bank requests of $10 million or more can be discussed individually. Availability depends on the transaction, financial strength, collateral and participating lender requirements.
Discuss Your Business Line of Credit Options
Tell us how much capital you need, how you plan to use it and how long your business has been operating. We’ll help you explore available options and understand the next steps.
Call 866-810-1305
Email info@simplifiedcapital.com
Request Line of Credit Information
All financing is subject to credit approval, underwriting, provider availability and applicable program requirements. Rates, limits, terms, fees, collateral and guarantee requirements vary. Advertised starting rates and maximum amounts or terms are available only to qualifying borrowers through select programs and may not be offered together.