Business lines of credit
A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use.
2% to 5% a month
Rates lenders in our network quote for lines of credit, as of September 2026.1
It suits costs that come and go, like payroll before customers pay, stock ahead of a busy season or a repair that can't wait, because you borrow only when you need to. Its rate is quoted by the month, so compare offers by total cost, fees included.
Last updated
How a line of credit works
A lender sets a credit limit for your business.
You draw money when you need it, up to that limit. Some lines charge a fee each time you draw.
You pay interest on what you've drawn, not on the full limit, and repay it on the lender's schedule.
As you repay, that amount becomes available to draw again.
The lender reviews the line from time to time and can renew it, change the limit or close it, as the agreement allows.
When it fits, and when it doesn't
Where it fits
- Your costs are uneven: seasonal stock, payroll before customers pay, or repairs that can't wait.
- You want money available before you need it, rather than applying each time.
- You expect to repay what you draw and borrow again.
- You want to pay interest only on what you use.
Reasons to think twice
- You need one large amount for a single purchase. A term loan or equipment financing may suit it better.
- You would carry the balance indefinitely. A line works best when you repay what you draw.
- Fees add up: some lines charge to draw, to keep the line open, or when you don't use it. Compare total cost, not just the rate.
- The lender can reduce or close the line, sometimes when you need it most.
What lenders usually look at
- Revenue, and the activity in your business bank account
- How long your business has been operating
- Personal and business credit history
- Existing debt and cash flow
- Receivables, inventory or other assets, for a secured line
What they weigh, and how much, differs from one to the next and by product. No single number decides it.
Documents you may be asked for
- Recent business bank statements
- Business tax returns
- A profit and loss statement and a balance sheet
- An accounts receivable aging report, for a line secured by your invoices
Each lender or funder tells you what it needs for your application, and you can upload documents in your 37Lend account.
Also called
- Business LOC
- Revolving line of credit
- Business credit line
- Working capital line
- Revolver
Compare with
Business credit card
A business credit card is revolving credit for everyday spending, billed each statement cycle, and can help build business credit.
Term loan
A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback.
A/R financing
Accounts receivable financing is borrowing against your outstanding invoices while you keep them and collect from customers.
Line of credit questions
What are business line of credit rates?
Lenders in our network quote lines of credit at 2% to 5% a month, as of September 2026. That is a monthly figure, so the APR is higher, and it is the range lenders quote, not an offer. It usually applies only to what you've drawn. The rate you're offered depends on your credit profile, revenue and time in business, and on the lender that takes your application. Draw fees or a yearly fee can add to the cost, so compare offers by total cost.
What's the difference between a business line of credit and a business credit card?
Both are revolving credit. A line of credit puts cash in your bank account when you draw, so you can pay payroll, rent or suppliers who don't take cards. A credit card is for purchases wherever cards are accepted, billed each statement cycle. Limits, rates and fees differ by lender and card.
Do I pay interest on the whole line of credit?
Usually you pay interest only on what you've drawn, not on the full limit. Some lines also charge fees, such as a fee each time you draw or a yearly fee to keep the line open, so read each offer for every charge and compare total cost.
Can I get a business line of credit with bad credit?
It depends on the lender. Lenders weigh credit history alongside revenue, bank activity and time in business, and some offer lines secured by receivables or other assets. Checking your options with 37Lend uses a soft credit inquiry, which doesn't affect your credit score.
Is a business line of credit secured or unsecured?
It can be either. An unsecured line isn't tied to specific assets, though lenders often ask for a personal guarantee. A secured line is backed by collateral such as receivables, inventory or equipment. Which you're offered depends on the lender and your business profile.
Want to talk it through first? Book a call with a funding advisor.