Business Line of Credit

Short answer: A business line of credit is a revolving credit limit you can draw from whenever you need cash, repay, and draw again. You pay interest only on the amount you use. Through NexGen, lines go up to $1,000,000 for businesses with 12+ months in operation, $10,000+ in monthly revenue and a 650+ credit score.

At a glance

Line size: Up to $1,000,000
Time in business: 12 months or more
Monthly revenue: $10,000 or more
Credit score: 650 minimum
Interest: Charged only on what you draw
Approval speed: Typically 1 to 24 hours

Most cash flow problems aren’t about profitability. They’re about timing: a big inventory order before a busy season, a client who pays in 60 days, a payroll that lands before deposits clear. A business line of credit is built for exactly those moments. This page explains how it works, who qualifies and how NexGen Lending helps you open one.

What is a business line of credit?

Short answer: A business line of credit is flexible financing with a set limit you can borrow against as needed. Unlike a term loan, you don’t receive one lump sum. You draw only what you need, pay interest on that amount, and as you repay, your available credit replenishes so you can use it again.

What does “revolving” mean? Revolving credit replenishes as you repay it. If you have a $100,000 line, draw $30,000 and repay $10,000, you have $80,000 available again. A credit card works the same way.

How does a business line of credit work?

Short answer: Once approved, you receive a credit limit. You draw funds when needed, usually by transfer to your business account. Each draw is repaid on a set schedule with interest only on what you borrowed. Repaid amounts become available again, giving you a standing safety net instead of applying for a new loan every time.

Get approved for a limit based on revenue, credit and time in business.
Draw funds when a need comes up.
Repay each draw with interest on that amount only.
Your available credit refills as you pay it down.

Who qualifies for a business line of credit?

Short answer: For NexGen’s line of credit program, businesses generally need at least 12 months in operation, $10,000 or more in monthly revenue and a credit score of 650 or higher. Lenders also look at bank statements, existing debt and how consistently revenue comes in.

12+ months in business
$10,000+ in monthly revenue
650+ personal credit score
Recent business bank statements
Manageable existing debt

Not there yet? Revenue-based financing starts at a 500 credit score, and our business credit guidance can help you build toward a line.

Based in Hoboken? See our guide to a business line of credit in Hoboken, NJ.

What can you use a line of credit for?

Short answer: Lines of credit are best for recurring, short-term needs: inventory, payroll, supplies, covering slow-paying customers, seasonal swings and unexpected repairs. They’re less suited to large one-time purchases like a building or a major piece of equipment, where a term loan or equipment financing usually fits better.

How fast can you get funded?

Short answer: Many NexGen line of credit approvals come in 1 to 24 hours. Once the line is open, each draw can typically reach your account quickly. The best time to open a line is before you need it, so it’s ready the moment an opportunity or a cash crunch shows up.

Line of credit vs alternatives

Short answer: A line of credit is the most flexible option for ongoing cash needs because you borrow only what you use. A term loan is better for one defined project. Revenue-based financing is easier to qualify for but usually costs more. Credit cards are convenient but have lower limits.

	Line of credit	Term loan	Revenue-based financing
How you get funds	Draw as needed	One lump sum	One lump sum
Interest	Only on what you draw	On the full amount	Fixed total payback
Reusable	Yes	No	No
Best for	Recurring cash flow needs	Defined growth projects	Steady sales, fast need

How to apply with NexGen

Apply online in minutes. Share your revenue, time in business and what you need the line for.
An advisor reviews your file. We check fit against the line of credit criteria and suggest alternatives if another product suits you better.
Compare offers. We shop your request across 150+ private lenders and partners, including OnDeck, Mulligan Funding, Wayflyer and Rapid Finance.
Open your line. Accept the best offer and draw whenever you need.

Frequently asked questions about business lines of credit

Do I pay interest if I don’t use the line?

Generally you pay interest only on what you draw. Some lenders charge maintenance or draw fees, so review the terms before signing.

How much can I get?

NexGen’s line of credit program goes up to $1,000,000. Your actual limit depends on revenue, credit and existing debt.

Is a line of credit secured or unsecured?

Both exist. Many smaller lines are unsecured but require a personal guarantee. Larger lines may require collateral.

Can I get a line of credit with under 12 months in business?

Not through this program. Newer businesses often start with revenue-based financing, or SBA microloans through nonprofit lenders, and build history first.

Will applying hurt my credit?

Ask your advisor which lenders use a soft pull for prequalification. A hard inquiry is usually only made when you move forward.

Can I increase my limit later?

Often, yes. Lenders review limit increases after a period of on-time payments and steady revenue.

Want a safety net before you need it? Apply now or call (908) 639-4361.

Rates, terms and eligibility vary by lender and are subject to underwriting. NexGen Lending (SRJ Marketing INC dba NexGen Lending) arranges financing through a network of lending partners. This page is for general information only and is not financial, legal or tax advice.