Business Line of Credit
A revolving line that reprices as your revenue changes
A business line of credit is a standing credit limit you draw against as needed. Interest accrues only on drawn balances, and CanFund re-evaluates the limit from refreshed bank statements instead of at annual renewal.
- Amount
- $10,000 – $250,000 limit
- Term
- 6 – 12 month draw terms, revolving
- Draw cost
- 1.5% – 4% monthly on drawn balance
- Speed
- Limit set in minutes, draws in hours
Underwriting
How business line of credit is underwritten and priced
What the model reads
Deposit consistency, average daily balance, utilization behavior on prior draws, and the pattern of outflows the line is used to cover.
How the limit moves
The limit is recalculated on each data refresh. Sustained revenue growth and clean repayment raise it; declining balances or new senior positions lower it. Changes apply to future draws, never to funds already drawn.
How draws are priced
Each draw carries its own term and cost at the moment it is taken. Undrawn capacity is not charged and there is no maintenance fee.
Mechanics
How the structure operates, step by step
- 01
Limit issued
A maximum exposure is set from modeled capacity.
- 02
Draw requested
You request any amount up to the available balance.
- 03
Balance updates
Available credit decreases by the drawn amount immediately.
- 04
Capacity restores
Repaid principal returns to available credit as it clears.
Eligibility snapshot
What qualifies for this product
- Time in business
- 12+ months
- Monthly revenue
- $20,000+
- Personal credit
- 600+ FICO
- Bank statements
- Refreshed quarterly for limit reviews
- Draw minimum
- $1,000
Criteria are directional, not absolute. Files near a threshold are reviewed by a credit analyst. Average decision time across products is 4m 12s.
Restaurants, clinics, contractors, and online sellers — funded every day.
Questions
Business Line of Credit questions, answered directly
- How is a business line of credit different from a term loan?
- A line of credit is revolving: you are approved for a limit, draw only what you need, pay interest only on the drawn balance, and regain capacity as you repay. A term loan disburses the full amount at once and charges for the entire principal from day one. Lines suit recurring or unpredictable needs; term loans suit a single defined purchase.
- Do I pay anything if I never draw on the line?
- No. Cost accrues only on drawn balances, and CanFund does not charge a maintenance or non-utilization fee on undrawn capacity. An unused line costs nothing to hold.
- How often does my available balance update?
- The available balance updates as soon as a draw is issued and as repayments clear, typically within one business day of settlement. The underlying credit limit is re-evaluated on each bank data refresh rather than only at renewal.
More questions are answered on the full FAQ.
Related products
Get a priced business line of credit offer
Connect a business bank account to see structure, cost, and total dollar obligation before signing anything.