How it works
$10,000 to $20 million
TIME TO FUND
1 day to 4 weeks
1 year (renewable)
5.49% and up
Learn more about business lines of credit
Amerifi helps businesses like yours
with lines of credit and other small business loan options that provide the working capital your business needs to grow and thrive.
You’ve encountered credit before. You probably have several credit cards. You might have even maxed one or more of them out in your effort to build your business.
But you might not know how beneficial a dedicated business line of credit can be.
A line of credit allows your business to access capital, up to a set credit limit, whenever necessary.
You can use the money obtained from a line of credit to fund business growth, overcome unexpected challenges, even out variable revenue cycles, or address any other important business need.
Once you’ve been approved for a line of credit, you can access the funds almost instantly, which is a far cry from the three months to more than a year you’ll spend waiting to receive the funds from your SBA loan application.
Like a credit card, you’ll pay interest only on the amount you’ve used from your credit line.
If you pay your balance down on time, you can use a business line of credit over and over, for as long as you need. This is what’s known as revolving credit, in contrast to installment loans or term loans, which provide lump sums upfront and are repaid over defined loan terms.
You can also pay off your balance early to reduce the interest you’ll have to pay.
Small business owners who stay current on payments to their line of credit balances can build strong business credit over the long term.
With strong business credit, you’ll be easily able to obtain additional funding for your business in the future without depending on your personal credit history or being required to put up a personal guarantee.
Your business credit limit can also grow with your business, ensuring you’ll have the resources you need to tackle bigger challenges.
Unsecured lines of credit may come with weekly or monthly payments, while secured credit lines typically have monthly repayment terms.
Online lenders typically prefer to extend lines of credit to more established businesses -- you’ll need to have at least a year of business history to qualify.
You’re far more likely to obtain a business line of credit if your personal credit score is 550 or better, but you can get a line of credit without a personal guarantee if you can secure it with some business assets, such as real estate or equipment.
Business cash flows are often taken into account during the application process for a business credit line, and larger cash flows can earn your business a larger credit line.
You can check out our dedicated resources for these types of funding at the links above.
A business line of credit is not the same as business credit cards.
You won’t be able to pay for bills or purchases directly by entering an account number from your line of credit on a checkout page. However, you can withdraw funds from the line of credit directly to your business checking account, so you’ll be able to pay with these funds as soon as your bank clears the transfer and credits the money to your bank account.
This funding option is often used to address unexpected scenarios or cyclical capital needs rather than to cover large one-time expenses.
However, with lines of up to $20 million available, your business can get a lot out of its credit line when it’s really needed.
A business line of credit is often a good fit for these types of businesses:
Restaurants can be highly susceptible to the unexpected, which makes a business line of credit a great option for addressing temporary or one-time challenges.
If your inventory’s gone bad, a line of credit can help you restock before the big event. If harsh weather keeps your customers away for days, you can tap into your credit line to cover payroll and other regular payables. If your equipment needs repairs, you can pay the contractor from your available credit line.
Restaurants can also make use of lines of credit to run marketing campaigns, purchase supplies, undertake minor renovations, or hire new chefs. A business line of credit helps restaurateurs expect the unexpected.
A construction company or specialty contractor might not know where its next big project will come from, so many construction business owners often turn to a business line of credit to address variable revenue or pursue newly uncovered opportunities.
Bad weather can stop work for weeks. Your best laborer might hurt his foot and be out of commission, forcing you to rush a new hire. Your estimator might have not expected the project to need so much sheetrock. You might not have the capital to roll out that brilliant marketing campaign you devised to capture leads from a recent disaster.
A business line of credit can be the difference between doing okay and dangling over the edge for some construction companies. It’s one of the few things you can rely on in uncertain times.
Not sure if a business line of credit is right for your construction company? Check out our construction business resource page for more loan options and business financing opportunities.
Every retailer knows Black Friday is the most important shopping day of the year. But what are you doing to make sure the other 364 days are profitable for your retail business and contributing to its growth?
Consumers are fickle and competition is fierce. Any product you sell will experience high-volume days and low-volume days.
Beyond the day-to-day challenge of making sales, you’ll also have to contend with economic, weather-related, and cultural events largely beyond your control. The hot new thing you’ve stocked for the holidays might become passe overnight, or you might get flooded by a freak hurricane.
When “who knows what can happen?” actually happens, a business line of credit can be there to cover the gaps in your finances and help you get past a problem that won’t stick around forever.
On the other side of the coin, a line of credit can help you buy inventory and hire staff to handle a shopping surge, or to create limited-edition custom products to commemorate a special event (at a profit, of course).
A business line of credit makes your lows less painful and lets your retail business reach greater heights.
What’s diesel going to cost tomorrow? How many tires have you had to replace this month? Are your rigs overdue for inspection? Is your best regular client becoming less regular with every passing week?
These things can make the difference between thriving, barely surviving, and simply dying for trucking business owners.
A heavy-duty truck is an incredibly complex machine with thousands of potential points of failure, and the other aspects of your trucking business are no less complicated. A business line of credit can give you the financial resources and peace of mind you need to take on anything that gets in your way from point A to point B.
When you work in the healthcare industry, it can be hard to predict when people will need your services or products. It can also be hard to predict when you might need new equipment or personnel.
A business line of credit works for healthcare businesses and medical practitioners that need working capital to cover a range of day-to-day or short-term expenses.
If you’ve got a good handle on your revenue, and you’ve planned a surefire path to growth, a credit line can give you the financial fuel needed to quickly scale your operations to the desired size.
How many units can you produce every day? It’s not easy to answer that question, is it?
Unless you’ve got a stable production line, working on a small selection of products for a small selection of customers, you’re going to have to manage a ton of variables from day to day.
Your input costs, input suppliers, machinery, employees, customers, compliance... there’s a reason complex business management software was first developed for manufacturers.
Few businesses have to keep as many balls in the air as manufacturing businesses, and dropping a single one can cause a cascade of failure if you’re not prepared.
A business line of credit can help you prepare for anything that might cause problems in your day-to-day operations, including stuff that can give your business a boost if properly handled.
Advantages of business lines of credit
- Helps even out cyclical cash flows.
- Pay only for what you use.
- Lets you handle unexpected challenges or opportunities.
- Builds your business credit.
- Usable for any business purpose.
Drawbacks of business lines of credit
- Interest rates can sometimes be higher.
- You may not qualify for much credit without collateral.
- Can be abused if you’re not careful.
- May require new financial documentation each year.
If you have...
TIME IN BUSINESS
$10,000+ per month (annual revenue of $120,000)
You could be eligible for a small business line of credit worth up to $20 million today!