What is a business line of credit?

Last updated May 2026 · Reviewed by David Chen
Quick Answer

A business line of credit is revolving credit up to a set limit. You draw what you need, pay only on the amount drawn, and the available credit refreshes as you repay. Lines of credit suit fluctuating cash flow needs. Typical limits range from $10,000 to $250,000 with APR of 8-30%.

Key Details

  • Revolving credit, like a credit card for business
  • Pay interest only on drawn amount
  • Available credit refreshes as you repay
  • Limits: $10K-$250K typically
  • APR: 8-30%
  • Best for fluctuating cash needs
Answer by David Chen — Senior Business Funding Editor
12+ years in alternative lending. $200M+ underwritten.

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