Credit limit vs. amount drawn
If a facility has a $100,000 limit and the business draws $30,000, financing costs are generally tied to the outstanding balance according to provider terms.
Commercial credit guide
$100K Commercial Line of Credit: What to Consider
A $100,000 line of credit is a credit limit, not a guarantee that a business will qualify or that the full amount should be drawn.
Qualification
Providers may evaluate revenue, time in business, credit, existing debt and industry when considering a six-figure request.
Model the cost
Use the calculator to estimate simple interest on a hypothetical draw, then compare it with an actual agreement.