A line of credit is the only financing you arrange when you don't need it, to use when you suddenly do. Interest accrues only on what's drawn, the limit sits ready like a fire extinguisher - and like a fire extinguisher, its value depends entirely on what you point it at.
The 12 uses that compound
- Auction-week buying power (draw Tuesday, repay at retail)
- Bridging contracts-in-transit and insurance receivables
- Bulk-buy discounts: 8% off a parts order beats 12% APR for two months
- Covering the payroll timing gap in growth months
- Emergency repairs that idle revenue (the truck, the lift, the compressor)
- Seasonal inventory ramp before the rush
- Mobilization costs on a new contract before first invoice
- Marketing pushes with tracked, historical ROI
- Taking supplier early-pay discounts on YOUR terms
- Deductibles and gaps while insurance claims process
- Hiring a revenue-producer a month before you're 'ready'
- Backstopping a big customer's slow payment without panic
The 3 that sink you
Funding chronic operating losses (the line becomes life support, then it's gone and so is the business). Long-term assets on revolving money (a $60K machine on a variable-rate line is the wrong instrument doing the right job badly - that's what equipment loans are for). And treating the limit as income - drawn to the ceiling permanently, which converts your fire extinguisher into a second mortgage on your future.
The discipline metric
A healthy LOC touches zero (or near it) at least a few times a year. If your balance hasn't seen the bottom in 12 months, it's not a line anymore - it's term debt in disguise, and refinancing it into an actual term loan will cost less and think clearer.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Open it before you need it
Lines approve best on your good months - Dealerun can have one quoted this week, sized to your revenue, costing little or nothing to hold. The best time was your last strong quarter; the second-best time is now.
Put a line in place
Standby capital, quoted in hours.
FAQ
How big a line of credit can my business get?+
Unsecured lines typically run 50-100% of monthly revenue; secured (receivables, inventory, equipment) can go meaningfully higher. A $60K/month business realistically holds a $40-75K line - and grows it with clean usage history.
Does an unused line of credit cost anything?+
Often nothing - some programs carry small annual or maintenance fees; many waive them. Even a modest fee is cheap insurance compared to emergency-pricing the same money the week you actually need it.
Get a callback from a funding specialist
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See what funding your business qualifies for - it takes two minutes and won't affect your credit.