Business Line of Credit
BUSINESS LINE OF CREDIT OVERVIEW
|Estimated Credit Line Term
|5% to 10%*
|Time in Business Required
|Min Credit Score Require
|Min Monthly Deposits Required
|Min Monthly Revenues
|Min Credit Line Amount
|Max Credit Line Amount
|Max Number of Negative Days
|*rates depend on duration of funding
What is a Business Line of Credit?
A 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. There are zero prepayment fees, and there are no costs to maintain your credit line. You can stop using the credit line at anytime if all outstanding funds are paid back. This type of funding is for clients with fairly strong credit 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 needed to get approved. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at
Submit your online application by clicking apply below and entering a few basic details about your business.
What Will Unsecured Financing Cost You?The cost of a business line of credit depends on the rate received and the money you draw and have outstanding. To calculate the rate we use simple interest that is calculated with total repayments over a twenty six week period. Use the calculator below with weekly payments to give you an example of total cost scenarios for accessing your credit line for a specific period of time.
What Documents are Needed to Apply?
Documents Required for Less Than $100,000
- Drivers License
- Bank Statements
- Proof of Ownership
- Property Lease Agreement
- Business Licenses
- Voided Check
Additional Documents for Credit Lines More Than $100,000
- Personal Tax Returns
- Business Tax Returns
- Profit & Loss Statement
- Balance Sheet
- Business Debt Schedule (possible)
- Potential for Others
Keep Your Information Private. Apply Directly to One Source.
How Does a Business Line of Credit Work?
A credit line is a fast financing solution where a small business owner is approved for a specific amount of money that can be accessed in part or all of it depending on the business owners financial needs. The principal plus any fees will be paid back through weekly debits from the business owner’s bank account. As you make payments your line of credit is replenished for the principal paid back. As an example, if you have a $200 payment, $180 might be the payment that week for your principal and $20 would be for fees.
Why Would a Lender Take All the Risk?
There are a couple of reasons lenders are willing to offer business lines of credit. First, this type of business funding is not unsecured. Although you are not required to put up collateral, the funds are secured by a lien on the assets of the business as well as a personal guarantee by the business owner. The combination of a personal guarantee and a lien on the business assets, as well as the fees received gives lenders the incentive to assume the risk of default.
Is a Business Line of Credit Right For You?
A business line of credit is a good option if you require access to immediate business capital for your business and you do not have collateral, and you do not meet bank funding requirements or just do not want to go through the lengthy and stringent conventional process. This type of financing is also for business owners that want a credit line available when they need access to capital but do not want to take the full amount of money upfront and pay fees on that amount, just specific amounts needed at times that those additional funds are required. A business line of credit provides a financial cushion for the various times throughout business cycles when additional capital is required.
Advantages vs. Disadvantages
- No Collateral Required
- Only 6 Months in Business Required
- Less Documentation Than Bank Loans
- Reasonable Credit Requirements
- Quick Financing Turnaround
- Higher Payments Compared to Bank Credit
- Personal Guarantee Required
- No Monthly Payment Options
- Minimum Revenue Requirements
- No Bad Credit Options
Common Uses for a Business Line of Credit
Having a line of credit allows business owners the security they need to operate their business without the weight of paying back more money than necessary. Below you will find some of the ways small business owners utilize their credit line.
Business Line of Credit FAQ’s
There have been cases where the credit line is available the same day.
It is basically stating that you did not lie on your application, and that you agree to pay back the loan according to the terms in the contract. There are many different types of personal guarantees so be sure to read what your liability may be in the case of default.
No. There are no restrictions on how you use the money.
No. As long as the balances are settled you can close your account at no cost.
You can receive the funds to your account via ACH transfer or wire transfer. The difference is that a wire transfer has a cost but it is available immediately, and ACH transfers although free can take up to three days.
Yes. We also consider your business banking history and several other factors which can result in an approval. We encourage you to apply as we have various funding options and a loan expert will help you decide which one is right for you.
A minimum of 6 months in business is required for our credit lines.
No. We take pride in the privacy we offer, we never sell your information to anyone.
Why Choose Shield Funding
- No Collateral Required on Lines of Credit
- Always Competitive Rates and Terms
- Flexible Repayment Options
- No Hidden Fees
- Fair Credit Options Available
- Funds Deposited to Your Bank Quickly
Business Line of Credit Review
- No Collateral Required
- Very Competitive Rates
- Weekly Payment Option
- Quick Funding Turnaround
- Draw Funds Only When Needed
- Pay Only for Funds Transferred
- Great for Managing Business Financial Operations