Business Line of Credit

A business line of credit gives you a limit you can draw from when you need cash, and you pay only on what you draw. You can get one with bad credit: some funders set the limit mostly from your bank deposits, and the starting limit is smaller.

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Who it fits

It fits a business with costs that come and go: a contractor buying materials job by job, a shop stocking up before its busy season, a service company waiting on slow-paying clients. You draw when the bill comes, repay it, and draw again.

Deposits come in steadily, even if they're uneven.
You want cash on hand without paying for money you aren't using.
You'll repay each draw on a schedule, usually weekly or monthly.
You've been open long enough to have statements that show it.

If you need one lump sum for one purchase, a merchant cash advance often fits better. Our guide compares them: MCA vs line of credit.

A line of credit with bad credit

A low score doesn't close the door. Banks lean hard on credit. The funders we work with for lower scores read your bank statements first: steady deposits, few negative days and payments you already make on time. Your score still counts, and it shapes the limit and the price.

Expect a smaller starting limit. Many funders raise it after a stretch of on-time repayment.
Expect a shorter repayment schedule on each draw.
Clean up what you can. Fewer overdrafts and one main operating account make your statements easier to read.
Tell us about every open advance or loan. It shows on your statements anyway.

Every funder checks credit its own way. Ask us how the ones we'd send your file to handle it before you agree to anything. More on this in funding with bad credit.

How it works with Afterfirst

We're a nationwide broker headquartered in Los Angeles. Funders make the offers; we find the ones that fit your file and walk you through each one.

Tell us how you'd use the line, the size of a typical draw and how often you'd draw.
We call you back, usually the same business day, and tell you plainly whether a line or an advance fits better.
We send your file only to funders that offer lines to businesses like yours. Nobody else sees it.
Offers come back side by side: the limit, what a draw costs, the repayment schedule and any fee for keeping the line open.
You choose one, or you pass. Nothing happens until you pick.

What it costs, in plain words

A line of credit is priced by the draw. You're approved for a limit, and leaving it unused costs nothing unless the line carries a maintenance or monthly fee. Each time you draw, the funder prices that draw, with a rate or a fee on the amount, repaid over a set schedule. Some lines add a fee on each draw. As you repay, that part of the limit opens up again.

Compare lines on the dollar cost of a typical draw, how fast you repay it, and any fee for keeping the line open. Applying is free, and you never pay Afterfirst a fee. The funder pays our commission only if a deal funds, and the amount is in the offer paperwork before you sign.

Documents you'll need

Business bank statements for the last few full months, as PDFs from your bank, plus this month so far.
The funder name, balance and payment for every advance or loan you're paying now.
A voided check or bank letter for the account the funder will pay into.
Your driver's license and the business's tax ID.
A recent business tax return or financial statements, if the funder asks for them.

The documents guide shows what funders read on each statement.

Business line of credit questions

Can I get a business line of credit with bad credit?

Yes. Some funders set the limit mostly from your bank deposits, so a low score doesn't rule you out. The starting limit is smaller and each draw repays faster. Steady deposits, few overdrafts and on-time payments on anything you already owe help the most. Ask us how each funder checks credit first.

How is a line of credit different from a merchant cash advance?

A line gives you a limit to draw from again and again, and you pay only on what you draw. An advance gives you one lump sum with a fixed total payback. A line suits costs that come and go, and an advance suits one purchase you need now. We'll tell you which fits.

What does a draw cost?

Each draw is priced when you take it: a rate or a fee on the amount, repaid on a set schedule, usually weekly or monthly. Unused credit costs nothing unless the line carries a maintenance fee. Ask each funder for the dollar cost of a typical draw, so you can compare them side by side.

Will applying hurt my credit?

Tell us what worries you, and we'll ask each funder how it checks credit before your file goes to them. Some check credit only once you move forward with an offer. For most of the funders we work with, your statements carry the most weight, and nothing goes out until we've talked with you.

Who pays Afterfirst?

The funder does, never you. Applying is free, and you never pay us a fee. The funder pays our commission only when your deal funds, and the amount is written into the offer paperwork before you sign. If you turn down every offer, nobody owes anybody anything.

Business line of credit by industry

How this option works against each industry's deposits and slow months.

Business Line of Credit by city

Each city page pairs this option with that city's Census business data, its leading industries and a worked cost example.

Want cash on hand for the next bill?

Tell us how you'd use the line. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.

Call 877-FUND-654 Apply now