A line of credit provides flexible access to funds up to a predetermined limit, which you can draw from as needed. You only pay interest on the amount you use. A traditional loan provides a lump sum upfront that you repay over a fixed term with set payments. Choose a line of credit for ongoing or unpredictable expenses, and a loan for one-time large purchases.

Secured lines of credit require collateral (such as equipment, inventory, or accounts receivable) that the lender can claim if you default. Unsecured lines don't require specific collateral but typically have higher interest rates and stricter qualification requirements. Our business lines of credit are primarily unsecured, making them accessible to more businesses.

Yes, interest rates can vary significantly between lenders based on factors like your business credit score, time in business, revenue, and whether the line is secured or unsecured. Alternative lenders like us may offer higher rates than traditional banks but provide faster approval and less stringent requirements. We're transparent about our rates and work to find the most competitive option for your business.

Consider your specific needs: If you need regular access to funds for ongoing expenses or seasonal fluctuations, a revolving line of credit works best. For project-based funding, a non-revolving line might be more appropriate. Our advisors can help assess your business's cash flow patterns, growth plans, and financial health to recommend the right solution.

Common fees include: application or origination fees, annual maintenance fees, draw fees (charged when you withdraw funds), late payment fees, and early termination fees. Our lines of credit have transparent fee structures with minimal hidden costs, and we'll explain all potential fees before you commit.

Credit utilization refers to the percentage of your available credit that you're using. High utilization (typically above 30%) can negatively impact your business credit score. With a revolving line, as you repay what you've borrowed, that credit becomes available again. Maintaining a healthy utilization ratio by not maxing out your line and making timely payments can improve your business credit profile over time.

We consider factors beyond just credit scores. Strong revenue, time in business, and positive cash flow can offset credit challenges. You might start with a smaller credit line that can increase as you build payment history. Consider offering collateral to secure better terms, or explore our specialized programs for businesses with less-than-perfect credit. Our advisors can help identify the best options based on your specific situation.