What is a small business line of credit?

A line of credit is a flexible funding option that allows small businesses— like you — to access capital on a need-be basis. Your small business will go through an approval process to discover how much working capital is available to finance, and then allows you to draw out funds as needed. This option allows you the flexibility to access capital when it’s necessary, leaving you without the need to pay back a lump sum all at once.

How does a small business line of credit work?

With a line of credit, you’re able to help finance the upfront costs of new customer acquisition, growth, expansion, technology upgrades or payroll amounts, on a need-be basis. This allows you to budget out your expenses so that you’re only financing when necessary.

How it can help grow your business

Although a business line of credit offers small business financing, you’re offered more flexibility with credit amounts on a line of credit than on other traditional forms of lending.

Line of credit might be the way to go when it comes down to financing options. It offers term options from 3–18 months, flexible payments, and a fixed fee charge based on your withdrawal from your line of credit account. Business lines of credit are ideal for repeat cash flow needs, and is a great option for obtaining working capital to pay for unexpected expenses or exciting new business opportunities.

Ways to use your small business line of credit funds

To help with identifying your business’ financing needs, here are the most common ways that business lines of credit are used for:

• Ongoing operating expenses
• Covering cash flow gaps
• Pursuing a growth or expansion opportunity
• Upgrading your business’ equipment
• Covering seasonal downturns
• Making advances in your business’ technology
• Financing an unexpected expense

Who qualifies for a business line of credit

Being a small business owner can be stressful, especially when it comes to discovering what kinds of financing options are available to you. But if you’re looking to be considered for a line of credit, you’ll need to:

1. Provide a valid form of identification
2. Have a business bank account
3. Provide your last three months of business bank statements

How to apply for a small business line of credit

1. Just click on this link to apply online and answer a few questions.
2. Attach a voided or cancelled check pre-printed with your business name (in place of a temporary check, a bank signed letter with full account, routing number and business name will need to be provided) and Business license, phone or utility bill or previous processing statement.
3. Print and sign the pdf application and email/fax it to 310-321-5410 or sign and submit electronically.
4. You will receive a response from us within 1 business day. You can get set up as soon as 24-48 hours.