How a Line of Credit Works


Small business owners commonly run into financial hurdles that they did not plan for. When this happens, a business line of credit is often the answer to just about any economic concern.

A business line of credit works similarly to a credit card. You apply for the funding and, when you are approved for a certain amount, you have access to the funds as you need them up to your credit limit. As you make payments on your current balance, you can use that money again until your term limit is reached.

Line of credits typically accrue a principal amount and interest on the current balance. Rates will vary based on your credit and other qualifications.

While traditional banks offer line of credit funding to small business owners, their requirements for approval are frequently high and their loan process can be lengthy. ProFinance works directly with more lenders so you have a better chance at approval with comparative rates. However, if your credit and qualifications are less than optimal, you may be approved at higher interest rates because of the risk the lender takes in financing your business.

lady applying for a business loan on her laptop

Clients Choose ProFinance for their Loans and lines of Credit Because:

The quick and easy loan process lets you apply in minutes.

Upon approval, you can have your funds as early as the same day.

Our multiple alternative lending options let you choose the financing that fits your needs.


How To Qualify

To qualify for a small business line of credit, you typically (but not always) should meet the following minimum criteria:

  • Have a personal credit score of 500 or above
  • Generate a minimum average revenue that varies based on your expected loan amount
  • Have a minimum of six months of operating time in your business.

A selling point for these types of funding is that the approval process is easier and there is less documentation involved. For small business owners in need of fast working capital, the business line of credit may be the way to go.

To minimize the processing time for your approval, be sure to have the following pieces of documentation ready and available:

  • Government-issued photo ID,
  • Recent bank account statements (up to one year, typically),
  • Your previous year’s business tax return,
  • Your previous year’s personal tax return,
  • Your Profit and Loss statement,
  • Your balance sheet, and
  • An accounts receivable and payable report.

Not all of these documents will be necessary for every business lender or funder, but it’s better to have them on hand just in case to avoid any delays.

How To Apply:

1. Complete the short application form

Our application process takes less than 10 minutes, either online or on the phone.

2. Choose the lending option that suits your needs

Our agents will let you know which financing options you qualify for and you can decide which one you want to go with.

3. Access your funds

Complete the online checkout and the money is in your business bank account within 24 hours