How a business line of credit works
You are approved for a maximum limit. You draw any amount up to that limit, repay it on a set schedule, and the repaid amount becomes available again. You only pay for the funds you actually use.
Line of credit vs. merchant cash advance
A line of credit is usually less expensive and more flexible than an MCA, but it has stricter credit and revenue requirements. If you do not qualify yet, a merchant cash advance paid on time can help build the track record you need.
