A quick and easy funding process that offers business lines of credit to business owners.
Last Updated on January 13, 2025
Shield Funding TeamA business line of credit offers business owners financial security by providing access to funds for any type of business expense. You can draw on the line of your credit up to your approval amount in just a few clicks and your line of credit replenishes when you make payments. You can pay off early and reduce your costs. You can stop using the credit line at anytime if all outstanding funds are paid back. This type of funding is for clients with approx. 650 credit score that require immediate access to capital and cannot meet the requirements of bank financing or do not have the time to go through the red tape of acquiring a business loan.
The credit requirements are high so this program is not ideal for business owners looking for business funding with bad credit. A credit line is a great way to have the security of business financing without the costs of holding unnecessary funding but it does require a good credit history. If you are not in the excellent credit range you may want to explore a merchant cash advance as it has no credit requirements and also provides access to immediate working capital.
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
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The U.S. Small Business Administration (SBA) has launched the 7(a) Working Capital Pilot (WCP) program to provide small businesses with flexible, government-backed lines of credit. Running from August 1, 2024, through July 31, 2027, the program offers lines of credit up to $5 million with terms of up to 60 months. These credit lines are made to support both domestic and international transactions, allowing businesses to borrow against accounts receivable and inventory. With interest charged only on the amount used, the program gives a cost-effective solution for managing cash flow and short-term financial needs.
Bank of America offers unsecured business lines of credit starting at $10,000, providing flexible funding without the need for collateral. These revolving credit lines are ideal for buying inventory, managing cash flow, or covering unexpected expenses. To qualify, businesses usually need at least two years of operation under existing ownership, a personal credit score above 700, and annual revenue of $100,000 or more. Interest rates start as low as 9.00%, and funds can be accessed as needed, with interest charged only on the amount used.
U.S. Bank offers business lines of credit to help manage cash flow, buy inventory, or cover unexpected expenses. Unsecured lines range from $10,000 to $100,000, while secured lines for larger amounts require collateral like accounts receivable or inventory. These lines provide flexible access to funds, with interest charged only on the amount used. The application process is simple, with approvals and funding available in as little as one business day.
American Express offers business lines of credit through its Business Blueprint platform, with amounts ranging from $2,000 to $250,000. Each draw becomes a separate installment loan with flexible repayment terms and fees based on the loan amount and duration. To qualify, businesses need a minimum FICO score of 660, at least one year in operation, and monthly revenue of $3,000 or more. The application process is quick, providing fast access to funds for managing cash flow, purchasing inventory, or covering expenses. For more details or to apply, visit the American Express Business Blueprint website.
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There are many small businesses that have customers that only pay a portion of a product or service’s cost upfront and take the rest on credit. During the early stages of growth in a business it is easy to take on a lot of customers in an attempt to build a client base. This type of strategy puts the initial burden of the debt on the business owners. Having a line of credit allows an owner the flexibility to take the funds that they need based on how customers pay their debts to the business.
Managing inventory is one of the most difficult tasks for any business owner. Whether you should buy more or less for a particular product at any given time is almost impossible to guess exactly so the most common action is to purchase more inventory than needed. The last thing you want as a business owner is a customer willing to make a purchase without the product for that customer. The purchase of additional inventory of one product can leave the inventory of another product short. Having a credit line allows owners the flexibility to purchase inventory when needed.
Just like inventory, it can often be difficult to gauge what a weekly payroll will be. Having a credit line available takes all the worry out of paying employees. Any time you have a big payroll week you can access additional capital and just repay it in the later weeks when cash flow increases.
When operating a business there are myriad expenses that can arise and for most early stage business owners it is impossible to be prepared for every cost. Knowing that there is a financial cushion for any unforeseen costs allows business owners to operate their business more efficiently and with confidence, factors critical for success.
A business line of credit provides ongoing access to funds up to a set limit, allowing you to borrow, repay, and borrow again as needed. A business loan, on the other hand, provides a lump sum that must be repaid over a fixed term, often used for one-time expenses like equipment purchases or real estate.
Industries with fluctuating cash flows, such as retail, construction, and seasonal businesses, benefit significantly from a line of credit. It provides the flexibility to manage short-term needs like purchasing inventory during peak seasons or covering payroll during slow periods.
Some lenders may require businesses to use a minimum amount of their line of credit within a certain period to keep the account active. Others may not have such requirements, but it’s important to check the terms before signing up.
Yes, responsible use of a business line of credit can improve your credit score. Making on-time payments and keeping the balance low relative to the credit limit demonstrates good financial management, which can positively impact your business credit profile.
In addition to interest, some lines of credit may have fees such as annual maintenance fees, draw fees (charged each time you access funds), and inactivity fees if the line isn’t used for a specified period. Always review the terms for a full understanding of potential costs.
It depends on your needs. A secured line of credit typically offers higher limits and lower interest rates but requires collateral. An unsecured line of credit doesn’t require collateral, making it faster to obtain, but it may have stricter credit requirements and higher interest rates.
