Both products come from banks at true bank rates — but they work very differently. Choosing the wrong one for your situation can cost you money or limit your flexibility.
Business Line of Credit
A line of credit is revolving. You're approved for a credit limit — say $300,000 — and you draw from it as needed. You only pay interest on what you've drawn, not the full limit. As you repay, the funds become available again.
- Best for: ongoing cash flow needs, payroll, inventory, seasonal expenses
- Interest charged only on amount drawn
- Flexible — draw and repay as needed
- Terms typically 2–5 years, renewed annually
A line of credit is like a financial cushion — available when you need it, costing nothing when you don't.
Business Term Loan
A term loan provides a lump sum upfront, repaid in fixed monthly installments over a set term. The full amount is available immediately, and payments begin immediately.
- Best for: one-time investments — equipment, acquisition, expansion, refinancing
- Fixed monthly payments — easy to budget
- Full amount available from day one
- Terms typically 5–10 years
Can You Have Both?
Yes — and many businesses benefit from both. A term loan for a specific investment and a line of credit for ongoing working capital is a common and effective structure. Banks evaluate each separately.
We assess which product — or combination — best fits your business, then match you to the bank programs most likely to approve both at the best rates.
Ready to Access Real Bank Rates?
Talk to a consultant about your situation. We review your file, match you to the right bank program, and manage the full process until you’re funded.
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