What is a Business Line of Credit and How Does It Work?
A business line of credit is a type of funding that allows you to borrow from a set amount of money. You’re given a credit limit, and within it you can draw what you need, when you need it. You only pay interest and fees on what you borrow.
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Compared to a term loan, a business line of credit is typically used to cover recurring business expenses or bridge cash flow gaps. With Compass Business Loans, you replenish your available funds as you repay what you borrow. This is known as a revolving business line of credit. To help you build your credit, we report your payment history to the business credit bureaus.
Benefits of a Business Line of Credit
Revolving Lines of Credit from $5K-$500,000
Automatic Payments
Only Pay For What You Borrow
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Instant Funding: Get money in your account within seconds every time you make a withdrawal.
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A Consolidated Payment For All Withdrawals: Make one monthly or weekly payment on all withdrawals, avoiding the headache of multiple payment schedules.
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Access Funds Automatically: Receive automatic credit limit increases when we review your credit profile and determine if you qualify.
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Business Credit Building: Help build your business's credit by making on-time payments, which is reported to the credit bureau.
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Only Pay For What You Borrow: Withdraw only what you need, when you need it. And pay interest just on the financing you use.
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Revolving Credit: Apply once and funds replenish when you pay them back, so long as you make timely payments.
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No Prepayment Penalties: Get more flexibility by paying off your line of credit anytime you'd like with no penalty or fee.
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Transparent Pricing: We provide a comprehensive breakdown of your line of credit's cost, including all the key terms you need to evaluate potential loan offers.
1) Submit an Application
You can apply for any of our financing solutions in just minutes.
A Simplified Funding Process
2) The Underwriting Process
Our streamlined process allows us to provide you with a decision right away. You won’t wait long to find out how much you might qualify for.
3) Get Funding Fast
Once approved, you’ll get your funds quickly. We have one of the fastest funding processes in the industry for each financing product we offer.
Why Work with Compass Business Loans?
At Compass, we understand no two businesses are the same. That's why we look at each scenario individually to ensure that our clients get the financing that fits with their business goals and needs. By looking at each business individually, we can help approve many more small business loans than our competitors.
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With our hands on process, we get a large percentage of our business loan applications approved and can get our client significantly more capital. It only takes a few minutes to apply and less than 24 hours for approval.
