Bank Line of Credit
Revolving capital you only pay for when you draw it.
A business line of credit gives you a pre-approved ceiling you can draw against on demand — pay interest only on what you use, then re-borrow as you repay. The gold standard for managing cash-flow gaps, seasonality, and unexpected opportunities.
Program Highlights
Credit Line
$25,000 – $500,000
Rates
8% – 16% APR
Draw
On demand, any amount
Interest
Only on outstanding balance
Renewal
Annual review
Credit Minimum
650 FICO
Best For
- ✓Bridging invoice-to-cash timing gaps
- ✓Seasonal inventory or payroll cycles
- ✓Emergency reserves and opportunistic buys
- ✓Managing AR/AP timing mismatches
Requirements
- ·2+ years time in business
- ·$250k+ annual revenue
- ·Personal FICO 650+
- ·Positive average daily balances
How It Works
01
Application with 6 months bank statements and last-year tax return.
02
Underwriting sets a credit ceiling based on average deposits and DSCR.
03
Sign line agreement; draw via ACH or online portal as needed.
04
Pay down balance, redraw as needed — line renews annually.
Fact-Backed Impact
Published research and industry data on how bank line of credit help U.S. businesses grow.
40%
Of small business financing applications are for lines of credit — the single most-requested small business credit product in the U.S.
Source: Federal Reserve Small Business Credit Survey, 2024
82%
Of small business owners with a line of credit report it was 'important' or 'very important' to weathering revenue disruptions.
Source: JPMorgan Chase Institute, Small Business Cash Report
$1.4 Trillion
Estimated aggregate small business line-of-credit commitments outstanding across U.S. banks.
Source: FDIC Aggregate Bank Data
Illustrative Examples
The scenarios below are hypothetical illustrations of how this program is commonly used. They are not actual First Capital Funding client results.
Professional Services
Government contractor
$250k LOC bridges 60-day net terms on federal invoices — enabled the firm to bid on and win contracts 3x its previous size.
Services
Landscaping company
$100k line funds equipment and payroll during spring ramp-up, repaid in full by August each year. Zero carrying cost in the off-season.
Hypothetical examples for illustration only — not actual client outcomes. Individual results vary and no outcome is promised.
Common questions business owners ask
- How fast can a business get funding?
- How can contractors get funding while waiting to get paid?
- What are your options after a bank declines you?
Ready to move on Bank Line of Credit?
One application, one desk. A funding advisor will review your file and return offers tailored to your business.