Business Line of Credit
A flexible credit line you can draw from as needed to smooth cash-flow gaps.
Safer-first recommendations
Deal protection built-in
Partner-ready packets
Best for
SMBs needing capital aligned to a clear purpose and repayment capacity.
Benefits
- Borrow only what you need, when you need it
- Helps manage seasonal gaps and timing mismatches
- Can reduce reliance on emergency financing
- Often pairs well with strong AR and stable deposits
How it works
- Define the gap you’re bridging (payroll, inventory, materials, fuel)
- Set a draw-and-repay rhythm aligned to your cash cycle
- Compare options for fees, interest, and repayment flexibility
- Use line responsibly and avoid carrying permanent balances
Risk flags / when to avoid
- Revolving debt without repayment plan can become permanent cost
- Draws during low margin periods may strain runway
- Multiple obligations can increase stacking risk
FAQ
Is a LOC good for contractors?
Often yes for materials and payroll timing gaps, especially with predictable receivables.
How is LOC different from a loan?
LOC is reusable; loans are typically one-time lump sums with fixed terms.
Do I need collateral?
Some options require collateral, others don’t. Terms vary.
What’s a safe payment?
A payment range that fits your margin and current obligations—avoid exceeding it.
Do you guarantee terms?
No. Terms vary by partner.
Ready to review options?
Request a review and we’ll respond with next steps and a partner-ready packet.
Disclosures
- Not a lender: Financial Catapult is not a bank or lender.
- Third-party offers: Funding and processing options may be offered by third-party partners. Terms vary.
- No guarantees: Eligibility, terms, and approvals are not guaranteed.
- Not advice: Content is for informational purposes and is not financial or legal advice.
- Privacy: Information submitted is used to respond to your request and improve our service.