Glossary

Business line of credit

A business line of credit is a flexible funding arrangement where a lender makes a set amount of funds available that an owner can draw from as needed, rather than receiving one lump sum. As the business repays what it has drawn, that capacity becomes available to use again. Lenders offering a line of credit generally look at revenue, cash flow, time in business, and the business credit profile. It is one of the product types a funding marketplace can match a business to.