Run your numbers
How a draw is priced
Most business lines charge interest only on the drawn balance, often quoted as a monthly rate, plus a fee each time you draw.
Because you repay and can redraw, the cost depends on how much you draw and for how long. A short draw repaid quickly costs far less than the same amount carried for a year. See business lines of credit and the $350K line.
Line or term loan?
Use a line for recurring timing gaps and a term loan for a single, defined purchase.
If you will draw the full amount at once and keep it for the whole term, a term loan may cost less. Run both: business loan calculator.
Frequently asked questions
Do I pay anything if I do not draw?
On many lines, no interest is charged on unused credit, though some have maintenance or annual fees. Check the offer.
How fast can I draw?
Once a line is approved and open, draws typically arrive within one to three business days.