Business Line of Credit Loan

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 29, 2023

A business line of credit is different from a business loan.

A loan is a lump sum, whereas a line of credit is an ongoing stream of funds, like a credit card.

Lines of credit only charge interest on funds that are spent, rather than the whole amount.

Business Line of Credit Loan Forms

The forms needed for a business line of credit application vary from lender to lender, but you can expect to need some or all of the following:

Traditional Line of Credit Business Loan Description

A business line of credit is an ongoing stream of funds granted to businesses by a lender, traditionally banks.

The line of credit works like a credit card; businesses have a credit limit, are charged interest on the amount that they spend, and must pay back funds before they can be spent again.

Business Line of Credit Loan FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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