What it is
A commercial line of credit is a revolving financing structure that can provide a business with access to an approved credit limit. You draw funds as needed, repay the balance, and can draw again — subject to provider terms.
CLOC · Commercial credit resource
Commercial Line of Credit: Rates, Requirements & Funding Guides
A commercial line of credit gives your business revolving access to a credit limit — draw what you need, repay, and draw again. CLOC helps U.S. businesses understand how these facilities work, what they cost, and what lenders typically require.
CLOC / CommercialLineOfCredit.com is not a bank or direct lender.
How a commercial line of credit works
How cost is calculated
Interest typically accrues on the outstanding balance, not the full credit limit. Additional costs can include draw fees, origination fees, and annual maintenance fees. Use the calculator to model a hypothetical scenario.
Common qualification factors
Lenders commonly review time in business, annual revenue, credit score, existing obligations, and industry. There is no single universal standard — each provider sets its own underwriting criteria.
Secured vs. unsecured
A secured facility uses business assets or other collateral. Unsecured facilities typically rely more heavily on credit profile and cash flow — and may include a personal guarantee.
Line vs. term loan
A revolving line is designed for repeated access to credit and suits variable, ongoing needs. A term loan provides a lump sum repaid on a fixed schedule — better suited for one-time investments.
Size ranges
Lines of credit for business purposes commonly range from $25,000 to $1 million or more. The approved amount depends on the business's revenue, credit, and the lender's underwriting criteria.
In-depth guides
Plain-language explanations of commercial credit concepts for business owners and finance managers.
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