Lines of Credit
Lines of credit give you flexible access to money when you need it, letting you borrow and repay funds as your business cash flow changes throughout the year. A business line of credit works like a credit card for your company - you only pay interest on what you actually use, not the entire credit limit. Los Angeles Premiere Business Loans offers multiple lines of credit options, including unsecured lines up to 75% of your annual revenue, with a maximum of $1.5 million.
We help you understand line of credit vs loan differences so you pick the right financing for your situation. Our competitive line of credit rates make this an affordable way to manage cash flow. Whether you need secured vs unsecured line of credit options or want to compare business line of credit terms with personal line of credit alternatives, we guide you through the decision. When your business has seasonal ups and downs or unexpected expenses, a line of credit gives you the flexibility that fixed loans can't match.
Types of Lines of Credit We Provide
We offer several line of credit options designed for different business needs and situations. Each type works differently, so we help you choose the one that makes the most sense for your cash flow patterns.
Unsecured Business Lines of Credit
You can get an unsecured line of credit up to 75% of your annual revenue with a maximum credit limit of $1.5 million without putting up collateral. These lines work great for businesses with steady revenue that need flexible access to working capital for inventory, payroll, or unexpected expenses.
You only pay interest on the money you actually draw from the line, not the full credit limit we approve. Most business owners use these for managing seasonal cash flow gaps or taking advantage of early payment discounts with suppliers.
Revolving Lines of Credit
Our revolving lines of credit have no cap on the credit limit and offer terms up to 120 months, giving you long-term flexible financing. As you pay down the balance, that credit becomes available again for future use without reapplying for a new loan.
These work perfectly for businesses that need ongoing access to capital for growth opportunities or managing cyclical revenue patterns. You can draw money, pay it back, and draw again as many times as needed throughout the term.
Interest-Only Credit Lines
We offer interest-only credit lines from $25,000 to $150,000 where you only pay interest on outstanding balances during the draw period. This option dramatically improves your monthly cash flow since you're not required to make principal payments right away.
After the interest-only period ends, the line converts to regular principal and interest payments over the remaining term. Business owners love these for preserving cash flow during expansion phases or covering short-term working capital needs.
Secured Lines of Credit for Higher Amounts
When you need larger credit limits, we can structure secured lines backed by business assets, accounts receivable, or inventory. Secured lines typically offer higher credit limits and better rates because the collateral reduces our lending risk.
These work well for businesses with substantial assets that need significant ongoing access to capital. You get the flexibility of a line of credit with the favorable terms that come from providing security.
Why Choose Our Lines of Credit
We make getting a business line of credit faster and more flexible than traditional banks that take months to approve and fund credit lines. You work with our local team who understands seasonal businesses and cash flow challenges.
Only Pay Interest on What You Use
Unlike traditional loans where you pay interest on the full amount from day one, lines of credit only charge interest on your outstanding balance. If you don't use the line, you don't pay interest, making this a cost-effective way to have emergency funding available. This structure can save you hundreds or thousands in interest compared to taking out a full loan when you only need money occasionally.
Flexible Access to Funds When You Need Them
Draw money from your line of credit anytime through online access, and funds are typically available within a few business days after approval. You don't need to reapply or go through underwriting every time you need money like you would with individual loans. This gives you the ability to handle unexpected opportunities or expenses without waiting weeks for loan approvals.
No Collateral Required on Many Lines
Many of our lines of credit are unsecured, so you don't have to risk your business or personal assets to get approved. We base approval decisions on your business cash flow and revenue rather than what collateral you can pledge. This protects your assets while still giving you access to the working capital your business needs to operate and grow.
Understanding Line of Credit Terms and Costs
Line of credit terms vary based on the type of line, your business profile, and how you plan to use the funds.
How Interest and Fees Are Calculated
Interest on lines of credit is calculated daily on your outstanding balance, so you only pay for the money you actually use. Most lines have variable interest rates that can change with market conditions, though some fixed-rate options are available.
Credit Limits and Qualification Factors
Credit limits depend on your business revenue, cash flow strength, and the type of line you're applying for. We evaluate your business's financial stability, payment history, and ability to manage revolving credit when setting limits.
Draw Period and Repayment Structure
Most lines of credit have a draw period where you can access funds and make interest-only or minimum payments. After the draw period ends, the line typically converts to a repayment period with fixed monthly payments that include principal and interest.
Secured vs Unsecured Options Available
Unsecured lines don't require collateral but may have lower credit limits and slightly higher rates based on the increased lending risk. Secured lines use business assets, receivables, or inventory as collateral and typically offer higher limits with better rates. We help you evaluate both options to determine which structure provides the best combination of cost and flexibility.
Frequently Asked Questions
What's the difference between a line of credit vs loan for my business?
A line of credit gives you flexible access to funds as needed with variable payments, while a loan provides a lump sum with fixed monthly payments. Lines of credit work better for managing cash flow or uncertain funding needs, whereas loans are ideal when you know exactly how much you need upfront.
How do I qualify for a business line of credit and what credit limit can I get?
Qualification focuses on your business revenue, cash flow stability, and ability to manage revolving credit responsibly. Credit limits vary by line type - unsecured lines can go up to 75% of annual revenue (maximum $1.5 million), while secured lines may offer higher limits based on collateral value.
Are your lines of credit secured or unsecured, and what's the difference?
We offer both secured and unsecured options - unsecured lines don't require collateral while secured lines use business assets to back the credit. Unsecured lines offer more flexibility but may have lower limits, while secured lines typically provide higher credit limits and better rates.
How quickly can I access money once my line of credit is approved?
Funds are usually available within a few business days after your line of credit is established and you request a draw. Once set up, you can access money through online banking or by calling our team whenever you need it during business hours.
What are typical line of credit rates and how is interest calculated?
Line of credit rates vary based on creditworthiness and line type, and interest is calculated daily on your outstanding balance only. You don't pay interest on unused portions of your credit limit, making this a cost-effective way to have capital available when needed.