Business Lines of Credit

Unlike a term loan that delivers a single lump sum, a line of credit is reusable: as you repay what you have drawn, that amount becomes available to borrow again. Lines of credit may be secured (backed by collateral such as receivables or inventory) or unsecured, and may include a draw period followed by a repayment period.

1. Submit an application through ASBCLF with details about your business revenue and financing needs.
2. ASBCLF matches your application with lenders offering business lines of credit.
3. If approved, you receive a credit limit and can draw funds as needed.
4. You repay the drawn balance with interest, and available credit replenishes as you repay.

• Covering short-term cash flow gaps
• Purchasing inventory
• Managing seasonal revenue swings
• Bridge funding while waiting on receivables
• Taking advantage of opportunistic purchases

• Established business revenue
• Time in business, often one year or more
• Acceptable personal and/or business credit
• Manageable existing debt load

Eligibility varies by lender and program. ASBCLF submits your application to its lender network; individual lenders set their own criteria and make their own decisions.

• Business bank statements
• Business and personal tax returns
• Business financial statements
• Accounts receivable aging (for secured lines)
• Business licenses and formation documents

You draw funds as needed up to your limit and repay on a schedule set by the lender, often monthly. Interest accrues only on the outstanding balance. Some lines require full repayment at the end of a draw period, while others allow ongoing revolving access.

A line of credit is built for flexibility rather than a one-time purchase. See how it compares to other financing.