Business Lines of Credit

Business lines of credit are also typically unsecured debt, 

which means you don't have to provide collateral — assets, such as real estate, which the lender can sell if you default. 

The concept is similar to a business credit card, 

but getting a cash advance from a credit card is typically pricier.

Whether you’ve been in business for a couple of weeks or five years, access to cash is a crucial element of survival for a business. When the going gets tough, a business can fail unless it has access to cash on demand.

For business owners, getting unsecured business lines of credit is by far the best choice for having that cash on demand. The fact is that business owners want access to funds – whenever they need it, at a competitive rate and with flexible payment options. The National Federation of Independent Businesses says, “Think of it as an insurance policy that never needs to be paid until you need it.”


A line of credit is a flexible short-term financial tool that you can use for a variety of business needs, from working capital to purchasing inventory and more. You draw a line of credit down as needed and repay weekly.

What Is a Business Line of Credit?

A line of credit is a highly flexible financial tool. You draw funds from a line of credit when you need them: That could be as frequently as once a day, but it also could be once a month or even just once a year. There is no additional cost to draw down funds–and no obligation to do so. A line of credit is a financial tool that you can simply keep in your back pocket.

When you do need to draw down your line of credit, DFR and its funding partners have made it very easy. You can access your line of credit account at any time of day, any day of the week from any computer, tablet or smartphone, and have the funds you need at your disposal in minutes. You’ll repay the funds you draw down in fixed weekly installments over several months, and as you do, you are building a credit profile for your business, something that can help you qualify for a larger loan down the road.

How Can I Get a Business Line of Credit?

DFR has streamlined the application process for all kinds of funding. Thanks to our sophisticated technology, we require very little documentation from applicants. Nearly every industry can qualify for a business line of credit, although you will generally need to be in business for at least a year and meet a minimum monthly sales threshold. You may also need to pledge collateral to secure your business line of credit.

How Can I Use a Business Line of Credit?

You have many options, and unlike a loan, which is generally for one specific purpose, you can use a business line of credit for many different things at once. You can use a business line of credit to purchase inventory or fund construction work on a remodeling. You can use it to close a cash-flow gap when you have a late paying customer. You can use it to smooth out seasonalities in your business. How and when you use a business line of credit is up to you.