WHAT ARE BUSINESS LINES OF CREDIT?

A business line of credit functions like a business credit card. You have a credit line that you can draw funds from at any time. If you’re carrying a balance, you’ll have a minimum payment. You only pay interest, and potentially a draw fee on the portion that you borrow.  When you pay off a part of your balance on time, that money usually becomes available to you again. This is because most business lines of credit are technically “revolving” lines of credit.

A small business line of credit should be a priority because it could be critical to a small business’s success. Unlike other small business loans, you don’t need to reapply each time you want to use the money available to you. And as the Small Business Administration (SBA) points out, small businesses need access to cash to survive and thrive.

Luminary Financial makes applying for and renewing a small business line of credit easy.  Most of our lenders don’t require financial statements or tax returns like traditional lenders might.