Business Line of Credit: Flexible Funding You Draw On When You Need It
Get access to a business line of credit through our specialized line of credit partners. Terms up to 12 months, funding within 24 to 48 hours, and you pay interest only on what you borrow.
WRITTEN AND REVIEWED BY Anthony Collin, CEO, Smart Business Funding. Serving businesses since 2014. Published February 26, 2021. Updated October 2026. See all options on business financing.
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What is a business line of credit?
A business line of credit is a revolving pool of funds you can draw from when you need it, paying interest only on the amount you borrow. As you repay, the funds become available again. Through our line of credit partners, terms run up to 12 months with funding within 24 to 48 hours.
Business line of credit at a glance
What owners ask about first when they need flexible access to cash.
How a business line of credit works
Apply once, then draw what you need. See the full walkthrough on How It Works.
Apply with us
Fill out a short application and send recent business bank statements. You work with us directly, and we bring your file to our specialized line of credit partners.
Get your line
From application to funding usually takes 24 to 48 hours. Terms are up to 12 months.
Draw what you need
Take a draw when a need comes up. Interest is charged per draw, and only on the amount you borrow.
See how a line of credit differs from a lump sum
With a line of credit, you do not have to borrow the whole amount. Slide to see how a draw uses part of your line. Interest applies to the drawn amount only.
- Draw only what each situation calls for
- Interest is charged per draw
- The part of your line you leave alone costs no interest
Draw calculator, illustrated
Drag to choose how much of your line to draw.
Illustration only. It shows how draws work and does not show actual limits, rates or fees.
Ways business owners use a line of credit
A line of credit follows your business, so you can use it where it helps most.
Inventory Purchases
Stock up before the busy season or take advantage of a supplier discount, and draw only what the order requires.
Seasonal Cash Flow
Staff up, restock and prepare for peak season without waiting for sales to catch up.
Payroll and Receivable Gaps
Cover payroll and bills while customers take their time to pay their invoices.
Marketing and Advertising
Launch a campaign, run seasonal promotions or refresh your brand when the timing is right.
Emergency Repairs
Handle a breakdown or a surprise repair quickly, so the doors stay open and customers stay happy.
Opportunities and Growth
Say yes to a new contract, a bulk purchase or an expansion step when the opportunity shows up.
Also useful for supplier deposits, hiring, equipment repairs, tax payments and bridging a slow month. Browse industries we fund for ideas specific to your trade.
The benefits of a business line of credit
Draw only what you need
Take funds in the amounts that fit each situation instead of one large sum.
Interest only on what you borrow
Interest is charged per draw, and only on the amount you borrow.
Fast funding
Funding within 24 to 48 hours, so you can act while the opportunity is there.
Terms up to 12 months
A short, defined term that fits seasonal swings and cash flow gaps.
Specialized partners
We work with line of credit partners who focus on this product.
Work with us directly
Apply with us and you work with us, with a funding specialist to guide you.
Line of credit vs. merchant cash advance vs. bank term loan
Each can be the right tool. Here is how they typically differ.
| Business line of credit | Merchant cash advance | Typical bank term loan | |
|---|---|---|---|
| How you get funds | Draw as needed | One lump sum | One lump sum |
| What you pay for | Interest per draw, only on what you borrow | Factor rate and fees on the full advance | Interest on the full amount |
| Speed | Funding within 24 to 48 hours | Underwriting usually a few hours (some complete applications; timing varies and is not guaranteed), funding usually 24 to 48 hours | Often weeks |
| Term | Up to 12 months | Up to 10 to 15 months in house, up to 18 months Marketplace | Varies, often longer |
| Funded by | Our line of credit partners | Smart Business Funding or our Marketplace partners | A bank |
Not sure which fits? Tell your funding specialist what you need the money for. Learn more about merchant cash advances, equipment financing and our Transparent Terms.
What to have ready
Your funding specialist will confirm the exact requirements for your business.
Business line of credit questions, answered
Does Smart Business Funding offer business lines of credit?
Yes, through our specialized line of credit partners. We do not fund lines of credit in house. You apply directly with us, and we work with our partners to find the option that fits your business.
How fast can I get funded?
Funding within 24 to 48 hours.
How long are the terms?
Line of credit terms are up to 12 months.
How is interest charged on a line of credit?
Interest is charged per draw, and only on the amount you borrow. You are not charged interest on the part of your line that you have not drawn.
Do I have to use the whole line?
No. You draw what you need, when you need it. Each draw carries its own interest, based on the amount you borrowed.
What can I use a business line of credit for?
Common uses include buying inventory, covering payroll and seasonal cash flow gaps, bridging accounts receivable while you wait on customer payments, paying for marketing, handling emergency repairs, and taking advantage of supplier discounts or sudden opportunities.
What is the difference between a line of credit and a merchant cash advance?
A line of credit lets you draw funds as needed and pay interest only on what you borrow. A merchant cash advance is a single lump sum funded by us or our Marketplace partners, repaid with a fixed daily or weekly payment. We offer both, so we can help you choose the right fit.
What do I need to apply?
A short application and recent business bank statements. Your funding specialist will confirm exactly what else is needed for your business.
What will it cost?
Rates, fees and limits depend on the partner and your business. Your funding specialist will explain the full cost before you decide, and we encourage you to compare every option.
More from Smart Business Funding
Ready for a line of credit that works when you do?
Funding within 24 to 48 hours, terms up to 12 months, and interest only on what you borrow. Apply directly with us.
Lines of credit are provided through Smart Business Funding's line of credit partners. Approval, limits, terms, rates and fees depend on the partner and your business. Images and the draw calculator are illustrative.
