Business owner reviewing financial documents at a modern office desk

$5K - $500K

Line of Credit

A business line of credit is a revolving credit limit of $5K to $500K that you draw from as needed, repay, and draw again, paying interest only on the amount drawn. Sagamore, a commercial loan broker, matches businesses with lenders, and most applicants get a decision within 24 hours.

Written by Jordan Levy, Founder & CEO · Last updated November 4, 2026

Apply Now — No Credit Impact Book a Free Consultation

Line of Credit

$5K - $500K

Apply Now

What is a business line of credit?

A business line of credit gives you the flexibility to draw funds when you need them and repay on your own schedule. Unlike a term loan, you only pay interest on the amount you've actually drawn — not the full credit limit. This makes it ideal for managing cash flow gaps, covering seasonal fluctuations, or seizing time-sensitive opportunities without taking on unnecessary debt. Our lending partners offer competitive rates for qualified borrowers, with credit limits that grow as your business does.

Key Features

Revolving access -- draw and repay as needed
Interest only on outstanding balance
Decisions in as little as 24 hours
No prepayment penalties

Funding Range

$5K - $500K

How does a business line of credit work?

Apply and get approved

Submit a single application with basic business and financial information. Most decisions come back within 24 hours.

Receive your credit limit

Once approved, your revolving credit line is established. Limits typically range from $5K to $500K based on your business profile.

Draw funds as needed

Access capital whenever you need it — online transfer, wire, or check. Draw the full amount or just a portion.

Repay and redraw

Make payments on what you've used. As you repay, your available credit replenishes automatically — no need to reapply.

Why Choose This Product

Why use a business line of credit?

Cash Flow Control

Draw exactly what you need, when you need it. Repay and re-draw without reapplying.

Pay Only What You Use

Interest accrues only on drawn funds, not your full credit limit. Unused capacity costs nothing.

Fast Access

Once approved, funds are available within hours. No waiting through another application cycle.

Eligibility

Who qualifies for a business line of credit?

Minimum 600 credit score (higher scores unlock better rates and limits)
At least 1 year in business
At least $400,000 in annual revenue
No open bankruptcies
Most industries eligible — some restrictions apply to high-risk sectors

Real-World Scenarios

How do businesses use a business line of credit?

A landscaping company draws $30K each spring to hire seasonal crews and purchase materials, then repays as revenue comes in through summer and fall.

An e-commerce retailer uses a $75K line to stock up on inventory before the holiday season, repaying as sales clear over the following months.

A consulting firm taps its credit line to cover payroll during a gap between client payments, avoiding the cost of a full term loan.

Compare

How does a business line of credit compare to other options?

A line of credit is more flexible than a term loan because you draw only what you need, when you need it — there is no lump sum to manage. Compared to a bridge loan, a line of credit is longer-term and revolving, making it better for recurring cash flow needs rather than one-time gaps. Business credit cards offer similar revolving access but typically at higher rates and lower limits.

Frequently Asked Questions

Common questions about Line of Credit

The minimum is a 600 credit score. Borrowers with scores above 650 typically qualify for higher limits and more competitive rates. If your score is below 600, our credit repair program can help you reach the minimum before you apply.

Most applicants receive a decision within 24 hours. Once approved, funds can be available the same day or next business day depending on the lender and transfer method.

You will typically need 3-6 months of business bank statements, a valid government-issued ID, and basic business information (EIN, formation date, industry). Some lenders may request additional documentation based on the amount requested.

No. The minimum is 1 year in business with at least $400,000 in annual revenue and a 600 credit score. If your business is younger, our credit repair program has no time-in-business minimum and can help get your credit ready for when you reach the 1-year mark.

The initial application typically involves a soft credit pull, which does not affect your score. A hard pull may occur only after you accept a specific offer and move forward with a lender.

Yes. A business line of credit is tied to your business entity and helps build business credit history. It is underwritten based on business revenue and performance, not just personal credit. Personal guarantees may still be required depending on the lender.

By Industry