Capital that’s there when the moment is.
The right opportunity and the wrong surprise rarely arrive on schedule. A business line of credit keeps capital in position so you can act on either — without starting a loan application from zero.
What is a business line of credit?
A business line of credit is revolving financing that lets a business draw capital when it’s needed, repay it, and draw again — paying only on what’s outstanding.
It’s built for the way operating businesses actually run: income and expenses almost never land in the same week. Seasonal sellers stock up months before revenue arrives. Inventory-heavy businesses tie cash up on the shelf. Service firms cover payroll while invoices age. A line sits behind all of it — you draw against your limit when the gap opens, repay as cash comes in, and the full limit becomes available again. And as you demonstrate a repayment track record, your credit limit can grow with the business it supports.
When does a line of credit beat a term loan?
A line of credit wins when the need is recurring rather than one-time: ongoing working capital, unexpected costs, or a limited-window opportunity you want the agility to take. Unlike a term loan, you don’t have to reapply each time capital is needed — the access is already in place, and you control when and how much to draw.
The honest trade-off: because a revolving facility stays open and reusable, underwriting is typically more rigorous than for a single term loan. Lenders are committing to your business over time, not just to one transaction — which is exactly why we look at how the business performs, not just a FICO score, when we structure one.
Draw when you need it
Capital stays in position behind the business. When the moment comes — a supplier discount, a repair, a big order — you draw, instead of starting a new application.
Pay on what you use
Interest is charged on the outstanding balance, not the full limit. Repay as cash comes in and the line revolves back to full availability.
Built to grow with you
A demonstrated repayment track record can support a higher limit over time — so the structure scales with the business instead of capping it.
Put a line behind the business.
Tell us how your cash cycle runs and what you’d use the flexibility for — we’ll structure a line around it.
Who is a business line of credit for?
Operators whose costs run ahead of collections: seasonal and inventory-heavy businesses, contractors and trades waiting on draws, distributors fronting stock, service firms billing in arrears. Capital Source has funded businesses since 2015 with over $500 million in active funding programs, with working capital programs from $50K to $8M and rates from WSJ Prime + 2.75% for qualified businesses. A line of credit is one structure among several — if a different shape fits your cash cycle better, we’ll tell you.
- Working CapitalThe full toolkit, structured around your cash flow
- All SolutionsEvery structure we build, in one place
- Inventory Line of CreditWhen the capital lives on your shelves
- Invoice FactoringWhen receivables are the bottleneck
- How We OperateHow we underwrite and structure deals
Frequently asked questions
How is a line of credit different from a term loan?
A term loan delivers one lump sum repaid on a fixed schedule; a line of credit is revolving, so you draw, repay, and draw again as needs arise, paying interest only on the outstanding balance. The trade-off is that underwriting for a revolving facility is typically more rigorous, because the lender is committing to your business over time rather than to a single transaction.
What does it cost when I’m not using it?
It depends on the structure. Some lines charge only on drawn balances, while others carry maintenance or non-utilization fees — there is no universal answer, and any figure depends on how your facility is structured. We walk through the full terms with you before you commit, so the cost of holding the line is never a surprise.
What do you look at to qualify?
We look beyond FICO at how the business actually performs — revenue, cash flow, receivables, inventory, and the cash cycle the line would support. We have no SIC-code restrictions, so your industry is a structuring input rather than a disqualifier.
How fast can I access funds?
Once we have what we need, decisions can come as fast as 24–48 hours. Timing depends on the completeness of your file and the structure involved, and once a line is in place, drawing on it doesn’t require a new application.
Flexible capital. Intelligently structured.
Tell us where your business is headed and we’ll structure capital around it.