Like a credit card for your business. You can take money out of the LOC until your limit is reached.
A business line of credit is very similar to that of a credit card. These are often called revolving lines of credit because once you pay back your debt you can borrow from the same line of credit multiple times. Some institutions may ask you for an asset as collateral on these loans, we, on the other hand, do not.
Features:
Amount: ~$1,000 - $250,000
Interest Rates:
Loan Terms: 3 mo. - 7 yrs.
Repayment options: monthly