What it is used for
- Covering gaps between paying expenses and collecting receivables
- Buying inventory ahead of busy seasons
- Funding short-term projects and contracts
- Keeping a standing reserve of available capital
How it is typically structured
- Working capital lines
- Underwritten on revenue, cash flow and time in business
- Asset-based lines
- Sized to a borrowing base of eligible receivables and inventory
- Real estate secured lines
- Secured by equity in commercial or investment property
- Cost
- Interest is charged on the drawn balance; some lines also carry draw or maintenance fees
Terms vary by lender, property and borrower. This is general market information, not a quote or commitment.
What lenders look at
- Time in business and revenue trend
- Bank statements and cash flow
- Business and personal credit
- Existing debt and any liens
- Collateral, for secured lines
What you will need
- Recent business bank statements
- Business tax returns and year-to-date financials
- Accounts receivable and payable aging, for asset-based lines
- Entity documents and ownership information
Your portal checklist is generated from your deal, so you are only asked for what your file needs.
How DealRail places it
Business credit is placed through lending partners who underwrite and fund the line. We match the business to the lender whose product fits its size, industry and collateral, instead of stacking applications across lenders.
Common questions
What is the difference between a line of credit and a term loan?
A term loan provides a lump sum repaid on a fixed schedule. A line of credit can be drawn and repaid repeatedly up to its limit, and interest is paid only on what is outstanding.
What is an asset-based line of credit?
An asset-based line is secured by business assets, most often accounts receivable and inventory. The available amount moves with a borrowing base calculated from eligible assets.
Can I use real estate equity for a business line of credit?
Yes. Some lenders offer lines secured by commercial or investment real estate, which can support larger limits or better pricing than unsecured working capital lines.