What is business line of credit?
A business line of credit is the most flexible funding option you can have. Get approved once for a maximum amount, then draw any portion of it whenever you need cash — and only pay interest on what you actually use.
Think of a business line of credit as a financial safety net. Once Bolt sets up your line, the money sits there waiting. When a vendor needs paid early for a discount, when payroll lands on a slow week, when you spot an inventory deal — you draw what you need, and you only pay interest on that portion. Pay it back, the full line is available again. It is the closest thing in small business finance to having a second checking account stuffed with cash.
Why business owners choose LOC
- ✓ Only pay interest on what you draw
- ✓ Reuse the line as you pay it down
- ✓ No prepayment penalties
- ✓ Approved once, draw anytime
- ✓ Builds business credit
Things to consider
- ! Lower limits than term loans
- ! Variable rates
- ! May require quarterly recertification
Who it's best for
Cash flow gapsSeasonal businessesInventory purchasesRecurring expenses