Guide · Business
Business line of credit: money ready when you need it
A line of credit isn't a loan you get all at once. It's an approved amount you draw on, pay back and use again, and you only pay interest on what you use.
How does it work?
Picture an approved amount for your business. If you need inventory this month, you draw part of it. When your customers pay you, you pay it down and that amount is available again. It revolves: no new loan every time.
With the bank line of credit Lexington Capital arranges, the monthly payment depends on your balance, and no collateral is required. Co-signers are welcome.
What does it take?
Under Lexington's general guidelines: a credit score of 680 or higher, at least 2 years in business and a three-bureau (tri-merge) credit report. Your current credit cards should be under 25% of their limits. If they're higher, you may still pre-qualify, but you'll be asked to pay them down first.
If your business isn't 2 years old yet, there are other options, such as business credit cards or a line based on your sales. Kevin will tell you which fits.
How long does it take?
Usually 2 to 4 weeks from the moment the bank applications start. Before anything moves forward, you'll have a call that explains the whole program and a compliance call that goes over the agreement and its fees, so there are no surprises.
The truth: keeping your cards at 25% or less isn't a trick: it's the first thing banks look at. If yours is higher today, that's the first thing to fix.
The truth: a line of credit is a tool, not income. Use it for things that make the business money, and pay it on time.
See the requirements for Bank line of credit · All guides
These are Lexington Capital's general guidelines and can change. This guide is education, not an offer of credit.
Is this a fit for you?
Answer a few quick questions to see which programs may fit, or talk with Kevin directly.
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Financing is provided by Lexington Capital, not by Kevin or Retire With Kevin. Kevin is a referral partner of Lexington Capital, not a lender, and may receive a referral fee. Lexington Capital reviews every application and makes all credit decisions. Not every applicant is approved, and terms depend on the lender and your situation.