Line of Credit

A line of credit (LOC) is a credit facility provided by a commercial lender or financial institution that accelerates cash flow. An LOC acts as a reusable loan and offers borrowers more flexibility than a traditional bank loan; however it does include fluctuating rates and fees.

Often, borrowers are small business owners looking for short-term financing when they do not know the costs of a project or investment up front. Business lines of credit can also be used for operational expenses and to access working capital during slow seasons.