How Do Business Credit Lines Work?

Business credit lines are a financial lifeline for every business that requires access to funds quickly. Businesses have been establishing and using lines of credit to meet their working capital requirements and to take advantage of strategic opportunities. But what are these financial vehicles and where is the best place to apply for a line of credit?

Business Lines of Credit are basically a flexible loan from a lender, usually a financial institution such as a bank or alternative financing source. Similar to a credit card this loan offers users a preset maximum amount of funds that they may use as they see fit.

how business lines of credit work and help business growth

Business Line of Credit Repayment

The loan amount is to be repaid immediately or over a stated period in fixed amounts per installment. Lines of credit are useful in business scenarios such as where there will be repeated cash outlays but in unknown amounts that cannot be anticipated.

An example would be a contractor has purchased several properties he is planning to renovate and resell. He would use a business line of credit for the building materials and supplies used to refurbish these properties to prepare them for sale.

National Business Capital & Services Offers Business Credit Lines

Many banks do not advertise this financial product that so many businesses require as it is not very profitable for them.

As a result, their qualifications for this funding are strict and require a solid credit history. National Business Capital, however, is not a bank, so it does not have those restrictions.

We approve over 90% of our simple 1-minute application online, many of whom have previously been turned down by their banks.

If you have questions as to which funding would best suit your needs, give us a call and we’ll be glad to get a dialogue going. You have everything to gain including the money your business needs to thrive! Call today: (877) 482-3008.

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.