Business Line of Credit

Business Line of Credit FAQs

• How does a business line of credit work?

  A Business Line of Credit gives your business access to a predetermined credit limit that you can draw from as needed. Unlike a traditional loan, you only borrow the amount you need and can reuse available credit as you repay your balance.

• What can I use a business line of credit for?

  A business line of credit can help cover a variety of short-term financing needs, including managing cash flow, purchasing inventory, covering payroll, buying supplies, handling unexpected expenses or taking advantage of growth opportunities.

• How is a line of credit different from a business loan?

  A traditional business loan provides a lump sum that's typically repaid over a fixed term. A business line of credit offers revolving access to funds, allowing you to borrow, repay and borrow again as your financing needs change.

• How is interest charged?

  You pay interest only on the amount you borrow, not on your total available credit limit.

• What documents are needed to apply?

  Your Horizon Business Advisor will discuss your financing needs and guide you through the application process. Depending on your business and financing request, documentation such as financial statements, tax returns and business information may be required.

• How do I know if a business line of credit is right for my business?

  A business line of credit may be a good option if your business needs ongoing access to working capital, experiences seasonal cash flow fluctuations or has recurring operating expenses. A Horizon Business Advisor can help determine the financing solution that best fits your business goals.

• How much can I borrow?

  The amount you may qualify for depends on several factors, including your business's financial profile, creditworthiness and financing needs. Your Horizon Business Advisor will work with you to determine an appropriate credit solution.