Business Line of Credit

Whether You Need To Prepare For Seasonal Sales Boosts, Replenish Stock Or Stay Afloat, We Have A Small Business Funding Option For You.

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How Much Money Do You Need?

How Soon Do you Need It?

How Many Years in Business?

Avg. Monthly Revenue

Business lines of credit are flexible forms of financing that borrowers can use as needed. Think of them as credit cards where you only pay fees on whatever is used. Once you pay off your balance, your line of credit is replenished and you can again use however much you were approved for. Because you only pay fees for what you use, they offer a lot more flexibility than, say, term loans, which require you to start paying interest fees as soon as the loan is taken out.

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What is a business line of credit used for?

Business lines of credit are best for ongoing expenses like payroll, funding short-term projects or any other short-term recurring capital needs. As most business lines of credit take at least one business day to fund after you make a draw, they’re not the most liquid option here, and if that is your primary concern, we recommend looking at business credit cards. However, they are revolving (meaning your credit line replenishes every time you pay off your balance, like a credit card), making them a more appropriate option for ongoing expenditures than, say, a lump sum loan. If you’re looking to fund an ongoing marketing campaign or need funding to pay your employees, a line of credit is ideal especially if you’re unsure of exactly how much you’ll need.

Purchasing inventory

Repairing business-critical equipment

Financing a marketing campaign

Bridging a seasonal cash flow gap

Business line of credit pros:

Unsecured Funds

No Personal Guarantee &
No Collateral Required*

Quick Funding

Get Funded Within
a few days

Simple & Easy

No Personal Guarantee &
No Collateral Required*

Fast Approvals

Within 24 hours of
application

Lines of Credit

Business Line of Credit

A Business Line of Credit is ideal if your business needs easy access to cash for short-term capital, inventory purchase, supplier payment or an emergency fund.

Commercial Line of Credit

A Commercial Line of Credit is the right choice if your business has larger working capital needs.

See what our happy clients say:

First Down Funding picks up where banks leave off. Simple, immediate and competent processing. My application and approval took all of five minutes. Right up there with American Express as an example of how a major company should operate.

Denis C.
West Coast Agencies Inc.
First Down Funding’s system is excellent, most efficient and very quick. Never seen something like this before.

Derek D.
I have never been through a more pleasant experience getting a business loan.

Susy M.

What is a Business Line of Credit?

A business line of credit is a type of small-business loan that provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow

Funding Amount

$10K – $5M

Funding Term

Up to 18 months

Rates

Starting at 8%

Speed

1-3 Business days

Advantages

Only pay on what you draw
Draw funds immediately
Less than prefect credit accepted
Use for a variety of business purposes

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ARE YOU LOOKING FOR A BUSINESS LINE OF CREDIT?

Speak to one of our qualified and seasoned Small Business Funding Managers to better understand what funding options and approvals we have for your small business.

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Compared to other loan types

LOAN TYPES	MAX AMOUNTS	RATES	SPEED
Merchant Cash Advance	$7.5k – $1m	Starting at 1.09	1-2 business days
SBA Loan	$50k-$10m	Starting at 5%	3-5 weeks
Business Term Loan	$10k to $5m	Starting at 5%	1-3 business days
Business Line of Credit	$10k to $250k	Starting at 8%	1-3 business days
Receivables/Invoice Factoring	$50k-$10m	Starting at 5.8%	1-2 weeks
Equipment Financing	Up to $5m per piece	Starting at 5%	3-10 business days
Revenue Based Business Loans	$10K – $5m	Starting at 9%	1-3 business days

First Down Funding Can Get Your Business a Line of Credit

Ready to start a partnership? Then let’s talk about opening a line of credit for your business. At First Down Funding, we’re here to help your business thrive. Contact us today to get started with your free assessment. Also, please feel free to give us a call or shoot us an email. We look forward to working with you!

WHO QUALIFIES

► See who qualifies

HOW TO APPLY

► See how to apply

HOW IT WORKS

► See how it works

COST

► How Much Does a Business Line of Credit Cost

How to qualify for a line of credit

The process to qualify for a line of credit will depend on the requirements of individual lenders themselves, but there are some common standards. The following are crucial to qualifying for a good line of credit with good terms:

Most customers who were approved had

**Based on past customers

Annual Revenue

Over $150K

Credit Score

600

Time in Business

Over 2 years

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What to consider when choosing a business line of credit

The four major differentiators between funders and products are the following:

Minimum requirements. What are the minimum qualifications to apply? Most lenders will set strict requirements around personal credit scores, the annual revenue your business brings in, how long your business has been in business and what you’ll be using the funds for. Most lenders require a minimum credit score of 600, $100,000 in annual revenue and for you to have been in operation for at least a year. Looking at the different requirements across different lenders is the easiest and quickest way to determine what products you’ll want to consider and what not to.

Credit line details. What’s the size of the credit line I can borrow? Is there a set minimum/maximum that I need to draw on a regular basis? Most products don’t require a regular draw, but some might just to keep your rates locked. What are the usage fees? A typical cost-per-dollar-borrowed shouldn’t exceed $1.70. Of course, this will vary depending on individual applications and how “risky” lenders deem you to be. Are there any maintenance or origination fees? Most of the lines of credit geared toward startups don’t have any maintenance or origination fees.

Application process. How quickly can you find out if you’re approved? If approved, when will you get access to your funds? Do you need funds quickly or can you afford to wait? Online lenders have really helped drive down the timeline in this space. After submitting an application, you should expect a decision within a business day or two, and your funds should be made available within three business days.

Repayment terms. How often do you need to repay your borrowed amount? Depending on how your business handles cash, this can be a major factor in what lender or product you select. Most credit lines require weekly payments, but there are others with monthly or more flexible plans, if that’s how your business operates.

I know what I want to apply for. Now what?

First Down Funding offers online application that can be easily filled out within minutes. If you still have questions, call us at (866) 644 1353 or click here for more contact options. We’ll be ready to answer any and all questions on your product, our job is to help making filling out the application easier.

How To Apply For A Business Line Of Credit
With First Down Funding

What Documents Will I Need To
Apply For A Business Line Of Credit?

Driver’s License
Voided Business Check
Bank Statements
First Down Funding 1 Page Application

APPLY FOR A BUSINESS LINE OF CREDIT

What should I do once my business line of credit becomes active?

Pay careful attention to what you use your line of credit for. As stated above, you should use your line of credit for expenses that will generate a quick return. In a perfect world, you’d pay off your balance immediately after you use your credit to avoid fees. Usually, the bulk of fees will come from usage or interest fees on the credit that you use, so you shouldn’t feel pressured to use it. Also, pay careful attention to the repayment plan.

If you want to continue operating with your line of credit, good standing with your funder is crucial. Don’t make late payments, otherwise your funder may not renew the line of credit with you or may increase the fees and reduce the credit limit. On the flipside, if you always make your payments on time and use your credit enough to show that you’re a reliable customer, you may get your credit line increased and fees reduced.

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Contact First Down Funding for all funding options.

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Business credit card vs. business line of credit vs. loans: What’s the best option for You?

Business credit cards are best suited for frequent everyday business expenses. Credit cards are structured with lower credit limits and high fees. However, they’re also the most liquid form of credit a business can use, making them ideal for daily expenditures. For example, if you’re looking for a financing option to buy office supplies on a regular basis or take out clients week to week, credit cards are the right option.

Business lines of credit are best used for larger ongoing expenses like marketing campaigns or longer term projects. Business lines of credit are typically much larger than the credit limits of credit cards, and borrowers typically only need to pay interest when the line of credit is used compared to a term loan where borrowers pay interest and fees whether the financing is used or not.

Loans of all kinds are typically best for larger and infrequent business expenses. Loans differ from credit cards and lines of credit, given that they’re typically issued as a lump sum source of financing. As loans aren’t revolving, there is a finite limit to how much you can finance, so we recommend you have a good sense of how much you’re looking to spend before applying for a loan. If you apply for a loan, you’re going to have to pay back your principal amount with interest and fees attached. If you want to buy a new office space or spend money on a large, one-time expense that you feel will generate enough revenue that exceeds the debt, a loan is the right option.