10 min readTarget: business line of credit approval
How to Get Approved for a Business Line of Credit
A business line of credit is one of the most versatile funding tools available. Here's how to qualify and get approved.
What Is a Business Line of Credit?
Unlike a term loan where you receive a lump sum, a line of credit gives you access to a pool of capital you can draw from as needed. You only pay interest on what you use, and as you repay, the credit becomes available again.
Typical Requirements
| Requirement | Bank LOC | Online LOC |
|---|---|---|
| Credit Score | 680+ | 600+ |
| Time in Business | 2+ years | 6+ months |
| Annual Revenue | $250K+ | $100K+ |
| Collateral | Sometimes | Rarely |
| Rate | 7-15% | 15-35% |
| Limit | $50K-$500K | $10K-$250K |
How to Increase Your Approval Chances
- Build business credit first — Open Net 30 accounts, get a business credit card.
- Show consistent revenue — 6-12 months of stable or growing deposits.
- Keep utilization low — If you have existing credit, keep utilization below 30%.
- Prepare financials — Have P&L statements, balance sheets, and tax returns ready.
- Start small — Accept a smaller initial limit, use it responsibly, then request an increase.
When to Use a Line of Credit
- Covering payroll during slow periods
- Purchasing inventory for a large order
- Managing seasonal cash flow fluctuations
- Taking advantage of vendor discounts (buy in bulk)
- Emergency repairs or unexpected expenses
Ready to Get Funded?
Apply in 60 seconds. Get matched with the best funding options for your business. No obligation, no impact to your credit.