A business line of credit is a revolving account: you draw cash up to a limit, pay interest only on what you use, and can borrow again as you repay. Banks, credit unions and online lenders offer them. Lenders usually look at time in business, revenue and the owner's credit.
How it works
- Apply with a bank, credit union or online lender.
- Receive a limit based on revenue and credit.
- Draw funds to your bank account when needed.
- Repay; the available amount refills.
What lenders typically ask for
- Time in business; banks often want two years, online lenders less
- Business bank statements and revenue figures
- The owner's personal credit and usually a personal guarantee
- For larger or bank lines, tax returns and sometimes collateral
Requirements differ widely by lender. The U.S. Small Business Administration's funding pages are a neutral starting point.
Line of credit or Credit Key?
Credit Key is faster and needs little paperwork, but only pays for eligible purchases. A line of credit takes longer to open and gives you cash for anything the business needs. Full comparison: Credit Key vs a business line of credit.
Need money in hand, not checkout credit?
Request a personal loan through our lender network. It is a separate service from Credit Key and the request is free.
If you do not qualify yet
New businesses often cannot meet time-in-business rules. Some owners bridge the gap with a personal loan in their own name while building revenue history.
Bank, credit union or online lender
| Bank or credit union | Online lender | |
|---|---|---|
| Cost | Usually lower | Usually higher |
| Speed | Weeks | Days |
| Paperwork | Tax returns, financial statements | Bank statements, basic details |
| Time in business | Often two years or more | Often less |
| Relationship | Helps to bank there already | Not needed |
Costs to look for
- Interest rate, and whether it is fixed or variable
- Draw fees each time you take funds
- Annual or maintenance fees
- A fee for not using the line
- Whether the lender files a lien on business assets
Common questions
Is a business line of credit hard to get?
It depends on the lender. Online lenders are more flexible than banks but usually charge more.
Do I pay interest on the whole limit?
No, only on the amount you have drawn.
Sources
Checked November 12, 2026. We link to primary sources so you can verify each figure yourself.