Lines of credit.

A line of credit is revolving working capital: an approved limit you draw against, repay, and draw again, paying interest only on what is outstanding. It is the right instrument for timing gaps, seasonality, and opportunities that arrive on short notice.

How the process runs

1. File assembly. Financials, bank statements, and, for asset based lines, receivable and inventory detail.
2. Placement. Bank lines for the strongest files, asset based and fintech lines where speed or profile requires.
3. Approval and access. Bank lines commonly take 2 to 4 weeks; fintech lines can be live in days. Draws are then on demand within the limit.

Typical terms in the market

Bank lines commonly price at prime plus a margin with annual renewal and, at larger sizes, a borrowing base tied to receivables and inventory. Asset based lines advance against eligible collateral with monthly reporting. Fintech lines cost more and move faster, often with weekly or monthly payments on drawn balances. Unused capacity on a bank line is cheap insurance; unused capacity on a high cost line is a temptation, and we say which is which.

Documents you will need

1. 2 years of business financials and tax returns.
2. Interim statements and a debt schedule.
3. 6 months of bank statements.
4. Accounts receivable and payable agings for asset based structures.

What lenders look for

The cash conversion cycle, receivable quality and customer concentration, seasonality, deposit behavior, and coverage. A line is underwritten on how money moves through the business, so the statements carry the argument.