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*The calculator results are for general informational purposes and illustration only, to provide a potential estimate of loan costs, and is not to be treated as an offer. These estimates do not guarantee actual pricing. The information provided here is without warranty. This calculator does not offer tax, legal, financial, or investment advice, nor does it ensure the availability or eligibility for any specific product. Different institutions may have varying terms and conditions that could affect the calculator's outcomes. For personalized advice, please consult with qualified professionals. Applications are subject to approval.
How to Use the Business Line of Credit Calculator
Using the business line of credit calculator is simple and straightforward. Follow these steps to estimate your potential funding:
1. Enter the Amount
Use the slider or input field to specify the amount you wish to borrow. The range is from $5,000 to $250,000. This represents the total credit limit you are applying for.
2. Select the Term Length
Choose between a 1-year or 2-year term. This is the period over which you plan to repay the credit line.
3. Select the Monthly Rate
Choose the interest rate applicable to your credit line. Options range from 10% to 60%. This rate will influence the total cost of the loan and your monthly payments.
4. View Results
The calculator will display your estimated monthly payment, the total repayment amount, and an amortization schedule. This information helps you understand your financial commitment over the loan term.
Business Line of Credit Terms Explanation
Amount
This is the total credit limit you are applying for. It's the maximum amount you can borrow against your line of credit. The range for this calculator is $5,000 to $250,000.
Term Length
This is the duration over which you plan to repay the borrowed amount. The term can be either 1 year or 2 years. A shorter term means higher monthly payments but less total interest paid, while a longer term means lower monthly payments but more total interest paid.
Monthly Rate
The interest rate applied to your credit line. It's expressed as a monthly percentage. The rates range from 10% to 60%. A higher rate increases both your monthly payments and the total cost of the loan.
Monthly Payment
This is the amount you need to pay each month to repay the borrowed amount within the chosen term. It includes both principal and interest.
Total Repayment
This is the total amount you will repay over the term of the loan, including both the principal and the interest. It gives you a clear picture of the cost of borrowing.
Amortization Schedule
This table shows the breakdown of each monthly payment into principal and interest, and how the loan balance decreases over time. It helps you see the progress of your loan repayment.
What Is a Business Line of Credit?
A business line of credit is a versatile financial resource, offering businesses flexible access to funds unlike a traditional loan, which provides a one-time lump sum that must be repaid on a fixed schedule. With a line of credit, you can draw on a predetermined amount as needed, repay it, and draw again, only paying interest on the portion utilized. This revolving structure allows for continuous access to capital, making it ideal for managing cash flow. While it offers significant flexibility, it's important to be aware of potential fees and the limitation of not exceeding your credit limit. To learn more about how a business line of credit can benefit your company, read our full guide on business lines of credit.
Learn More
Funds Readily Available
A business can draw on the line of credit, easily and as needed through a simple withdraw request.
Flexible Terms
Unlike a traditional term loan, you only repay what you use with an agreed-upon rate and term. Capital is accessible as you need it!
How to Save Money on a Business Line of Credit
Saving money on a business line of credit involves careful planning and strategic financial management. Here are some tips to help you minimize costs:
Improve Your Credit Score
A higher credit score can qualify you for lower interest rates. Pay off existing debts, correct any errors on your credit report, and maintain a good payment history to boost your score.
Term Length
This is the duration over which you plan to repay the borrowed amount. The term can be either 1 year or 2 years. A shorter term means higher monthly payments but less total interest paid, while a longer term means lower monthly payments but more total interest paid.
Opt for a Shorter Term
While shorter terms mean higher monthly payments, they also mean less interest paid over the life of the loan. If your cash flow allows, choosing a shorter term can save you money.
Make Extra Payments
Paying more than the minimum payment each month can reduce the principal faster, lowering the total interest paid. Check with your lender to ensure there are no prepayment penalties.
Monitor Your Usage
Only draw from your line of credit when necessary. Keeping your balance low can help reduce interest costs.
Do I qualify?
Minimum Qualifications
600+ personal FICO score
At least 1 year in business
$100,000+ in annual revenue
What You Need To Apply
Basic info about your business
Business checking account
Last 3 months business bank statements
Line of Credit FAQs
A business line of credit is a flexible financing option that allows you to draw funds as needed up to a certain limit. You only pay interest on the amount you use, making it an excellent choice for managing cash flow and covering unexpected expenses.
The interest rate is determined based on factors such as your credit score, business financials, and the lender’s policies. Higher credit scores and strong financials typically result in lower interest rates.
Yes, most lenders allow early repayment without penalties. Paying off your line of credit early can save you money on interest.
Lenders in our network typically require a minimum FICO score of 600 and at least one year in business. A higher credit score and longer operational history can improve your chances of obtaining better terms, such as lower interest rates and higher credit limits. Some lenders may also require collateral for higher credit limits. Use our quick and easy online application to see if you qualify for a business line of credit today!
*The content provided on this page reflects the opinions and insights of Status Funding, based on our research, methodologies, evaluations, and various additional considerations. This information is accurate as of the initial publication date. Status Funding makes every effort to update and maintain the accuracy of this content to ensure its relevance and accuracy, however, the information may differ from what you may find on other platforms, including financial information sites, different service providers, or specific product pages. All information is presented without any warranty. We encourage you to carefully review the terms and conditions, relevant policies, contractual agreements, and all applicable details of the financial institution when considering offers. The ranges mentioned here do not represent pre-qualified offers. Ranges may be greater or less based on the information provided in your business financing application. Please be aware that Status Funding may receive compensation from financial institutions that are reviewed on this page if you proceed to obtain business financing through them.
