A line of credit for ongoing costs
An approved limit you can draw from when you need it, and pay down as you go. The limit, pricing, draw rules and repayment depend on the funding partner's written offer. Apply once and compare offers side by side.
What a line of credit can cover
Instead of one lump sum, you get access up to an approved limit, which suits needs that repeat or are hard to predict. What a partner will offer depends on your business and the specific offer.
Cash-flow gaps
Cover costs in the time between finishing work and getting paid by your customers.
Supplies and opportunities
Buy supplies as you need them, or act on an opportunity when it comes up.
Emergencies
Keep access in reserve as a safety net for costs you can't predict.
Is it the right fit?
A line of credit works best when needs repeat or are hard to size in advance. If you have one defined project, term financing may fit better.
Often a good fit
- Costs come up again and again, like a seasonal inventory cycle
- You don't know exactly how much you'll need, or when
- You want access in reserve for the unexpected
Think twice if
- You have one project with a known budget; term financing may suit better
- You'd depend on future draws, which a partner may be able to limit or stop
- Fees on unused credit or renewals would outweigh what you actually draw
How the review works
Your application gives our funding partners what they need to evaluate the business. The review may include business and owner information, financial records, bank statements, credit reports and identity verification. Fair Square may share your application information with prospective funders, lenders, brokers and service providers to evaluate, process, fund or service your request, as described in our privacy policy.
Each partner may handle draws, repayment, renewal, fees and availability differently. Approval and continued access are not guaranteed, and any offer depends on underwriting, verification and final approval by the funding partner.
Before you accept an offer
Don't rely on a general description of a line of credit. Read the complete written agreement and get clear answers to these questions:
- What is the approved limit, and how do you request a draw?
- What charges apply to the amount you draw, to unused credit, and to maintenance or renewals?
- How and when must each draw be repaid?
- Can your limit change, and what could stop future draws?
- Which companies are named in the documents as the funding partner and the servicer?
The cost calculator and our guide to factor rates, APR and total cost help you put an offer's dollars and timing on the same basis. Ask your advisor about anything that's unclear before you sign.
Fair Square is not a bank or a lender. Credit limits, pricing, fees, draw access and repayment depend on the funding partner and the final written documents. Funding is for business purposes only. Read the funding disclosures.
Compare your options
If the need is today's operations, look at working capital. If you're planning one defined investment, compare term financing.
Working capital
Funding for day-to-day needs, repaid from your revenue over a set period.
Term financing
A lump sum with a fixed payment schedule, for bigger, planned investments.
Working capital vs. a line of credit
Our guide to choosing between the two for your cash flow.
Also compare term financing vs. a line of credit.
Compare line of credit offers.
From $10,000 to $2,500,000. One application, every offer side by side, and a real person to walk you through them.