A business line of credit is a financial tool that behaves like a credit card. There is a specific set line amount and you may draw funds from the line up until the limit. There are typically no minimum or maximum number of draws that you can make and no penalties for paying down the line. Business Line of Credit features vary from lender to lender and bank to bank.
Some of the factors that can vary:
Business Lines of Credit can be either unsecured or secured and used for any type of business expense as it arises. It may be subject to an annual review and formal renewal, and will begin to incur interest as soon as you draw the funds.
