Business Line of Credit: Limits, Terms, and Requirements

Business Line of Credit

A business line of credit is a revolving limit you draw from when you need cash and repay when you have it. You pay interest only on what you draw. Through Kapitus and its network, limits run up to $750,000 on terms up to 24 months, at a fixed rate. The starting points are 2 years in business, $180,000 in annual revenue, and a credit score of 600 or higher.

Last updated October 14, 2026

At a glance

Credit limit	Up to $750,000
Repayment term	Up to 24 months
Payments	Daily, weekly, or monthly
Interest	Charged only on the amount drawn
Decision	In as little as 4 hours
Funding	An active line in as little as 24 hours
Time in business	2 years or more
Annual revenue	$180,000 or more
Credit score	600 or higher

Figures are what Kapitus publishes for its business line of credit, checked October 12, 2026, except the term and the credit floor, which reflect our experience across the marketplace: credit floors run from 600 to 680 depending on the lender. Kapitus publishes 650 and approves at 680 and above. Meeting a minimum does not guarantee approval.

How a line of credit works

The lender approves a limit.
You draw any amount up to that limit.
You repay what you drew, plus interest on that amount.
As you repay, the limit becomes available again.

You do not reapply each time. That is what makes a line useful for needs you cannot predict.

What it costs

Kapitus does not publish a rate range for its lines, and we will not guess at one. What to know:

You pay interest only on the drawn balance. A $200,000 limit with $40,000 drawn costs interest on $40,000.
The rate is fixed. Every line we offer carries a fixed rate or a fixed cost per draw. It does not move with the market.
The payment may not be. On some lines the payment moves with your balance. On others each draw carries its own fixed payment, whether it amortizes or is fee-based. Ask which yours is.
Unsecured costs more than secured.
Ask about fees. Draw fees, maintenance fees, and renewal fees vary by lender. A draw fee is charged every time you draw, so a line you tap often can cost more than a loan.

Before you draw, ask for the rate, every fee, and the payment on the amount you plan to take.

How fast you repay matters as much as the rate. See interest rates and minimum payments.

What a line is good for

Cash flow gaps. Covering payroll or rent while you wait on customer payments.
Seasonal swings. Buying inventory ahead of a busy season and repaying after it.
Surprises. A repair, a rush order, a supplier discount with a deadline.
A cushion. Having approved credit in place before you need it.

Where it goes wrong

Expecting a loan-sized limit. Lenders approve lines for less than they would lend on a term loan, sometimes substantially less. If the need is a known amount, a term loan usually gets you more money.
Paying more than a loan would have. The rate plus a fee on every draw can add up to more than a term loan, even one with a higher total payback, depending on how you use the line. If you will draw often, or draw the full line and hold it, price the line against a loan for the same use before you sign.
Using it for long-term purchases. Equipment or a build-out belongs on a term loan or equipment financing, where the payment is fixed.
Drawing to the limit and staying there. A line that never gets paid down is an expensive term loan.
Not knowing how the payment works. The rate is fixed, but on some lines the payment moves with your balance, while on others each draw carries its own fixed payment. Know which before you draw, or budgeting gets hard.

Line of credit vs term loan

	Line of credit	Term loan
You receive	A limit to draw from	One lump sum
Interest on	The drawn amount only	The full loan
Rate	Fixed	Fixed
Payment	Moves with your balance on some lines, fixed per draw on others	Fixed
How much	Usually less, sometimes substantially less	More for the same business
Reusable	Yes	No
Best for	Ongoing or unpredictable needs	One purchase with a known cost

See small business term loans for the lump-sum option.

How to apply

Fill out our short form.
Complete the lender’s application.
A financing specialist reviews your file and may ask for ID or financial statements.
Review your limit, rate, and fees.
Sign, then draw when you need to.

Sources

Kapitus: Business Line of Credit, checked October 12, 2026

Common questions

How is a line of credit different from a term loan?

A term loan gives you one lump sum and a fixed payment schedule. A line of credit gives you a limit. You draw what you need, pay interest only on that amount, and can draw again as you repay.

Do I pay anything if I do not use the line?

Interest is charged only on what you draw. Some lenders also charge a draw fee or a maintenance fee, so ask for the full fee schedule before you sign.

Is a business line of credit secured?

It can be either. A secured line is backed by collateral and usually costs less. An unsecured line needs no collateral and usually costs more.

Why is my line smaller than the loan I was offered?

That is normal. Lenders approve lines for less than they would lend on a term loan, sometimes substantially less. A line is open-ended credit the lender has to stand behind over time. If you need a specific amount, ask for a term loan quote as well and compare.

Is a line of credit cheaper than a term loan?

Not always. The rate plus a fee on every draw can add up to more than a loan, even one with a higher total payback. It depends on how you use the line. Drawing once and repaying fast favors the line. Drawing often, or drawing the full line and holding it, often favors the loan. Price both for the use you have in mind.

Can my limit go up?

Kapitus says increases are possible in most cases, based on your credit and your repayment history on the line.

Is a line of credit better than a business credit card?

For larger or longer needs, usually yes. Lines generally carry lower rates and higher limits. A card is fine for small expenses you pay off within the month.

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