Bank Line of Credit
A bank line of credit is most suitable for companies looking for a cost-effective, long-term debt partner that can grow alongside the business. It is particularly appropriate for businesses that are profitable, experiencing rapid growth, and in need of an efficient capital injection.
Key Eligibility Criteria
Understand the benchmarks that guide approvals and structuring.
Check Size
From $1 million to $50+ million. Flexibility to increase line size over time
Rate
Generally starts at Prime or SOFR + 2. Rates may adjust with performance and financial stability.
Security
UCC1 security on all of the business assets. Ie. receivables, inventory, or other assets
Time to Close
Typically 4–6 weeks from signed term sheet. Timeline depends on due diligence and documentation. Efficiency improves with complete financial records
Term
Varies by bank and structure, usually a 2-3 year term. Often structured with annual renewals