Business Line of Credit
Fast access to the funds your business needs with an unsecured line of credit.*
BizEssentials Line of Credit
Get up to $100,000 in an unsecured line of credit to help manage your business cash flow. With substantial cash available when you need it with a BizEssentials® Business Line credit card or checks, you can be as responsive as your business demands.
Product Features
- Unsecured line of credit from $25,000 to $100,000
- Access by BizEssentials Line Visa® card or by check
- Worldwide acceptance with BizEssentials Line Visa
- Minimum payment – the greater of $50 or 2½% of the balance
Product Benefits
- Multiple card holders with pre-approved spending limits
- Annual Summary Statement categorizes expenses for the previous year
- Linked account option to provide overdraft protection on your BizEssentials Checking account
Small Business Line of Credit FAQs
What is a small business line of credit?
What are the small business line of credit requirements?
The requirements for a small business line of credit can vary, depending on the lender and the specific type of credit line you're applying for. To learn more about eligibility requirements, please contact one of our business bankers for assistance. Common requirements typically include:
- Credit Score: While the minimum required credit score varies, a higher score generally improves your chances of approval and may result in better terms. Personal and business credit scores are usually reviewed.
- Time in Business: Businesses that have been operating for a minimum period, often at least six months to a year, are preferred. Established businesses with a proven track record of revenue and financial stability may have an easier time qualifying.
- Annual Revenue: Businesses may have to meet minimum annual revenue requirements. This helps ensure that your business generates enough income to repay the line of credit.
- Business Financials: Be prepared to provide financial statements, including income statements, balance sheets, and cash flow statements. These documents help assess your business's financial health and repayment ability.
- Personal and Business Tax Returns: Both personal and business tax returns for the past one to three years to verify your income and assess your creditworthiness.
- Business Plan: Some lines of credit may require a business plan outlining your company's goals, market analysis, financial projections, and how you plan to use the line of credit funds. This demonstrates your understanding of your business's needs and your ability to repay the debt.
- Collateral: Depending on the amount of credit requested, you may need to provide collateral to secure the line of credit. Collateral can include assets such as real estate, equipment, inventory, or accounts receivable.
- Legal Documentation: Ensure your business is properly registered and compliant with all legal requirements. You may need to provide business licenses, permits, and other documentation to verify your business's legitimacy.
- Personal Guarantee: The line of credit may require a personal guarantee, especially for newer businesses or those with limited credit history. This means you are personally liable for repaying the line of credit if your business cannot.
- Use of Funds: Be prepared to explain how you intend to use the line of credit funds – business-related purposes, such as working capital, inventory purchases, equipment upgrades, or expansion initiatives.
How is line of credit different from a term loan?
Unlike a term loan (which provides a lump sum up front), a line of credit offers more flexibility. You can draw funds as needed, repay them, and then borrow again up to your limit.
