Use a Business Line of Credit


Line of Credits are one of the best products for small business owners who want flexibility and the option to be able to draw the funds when they need it.  Lines of Credit can be used in a multitude of ways to help a small business grow. 

Upwise offers a secured and unsecured line of credit. Unsecured lines of credit are not attached to any assets and secured line of credits are secured by assets such as accounts receivables, invoices, equipment and more. 

We’ll go over the costs, qualifications and use of proceeds to help you determine if this type of financing is the best option to fund your small business. 

A single accident could set back your business growth a long way if you’re not prepared.  But how can you expect the unexpected when it comes to your business?  By failing to prepare, you are preparing to fail, so make sure you are prepared and have access to funds when you need them.  

That’s why having access to flexible business financing like an Upwise Line of Credit can be very helpful.


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What is a Business Line of Credit?

A revolving business line of credit gives access to a pool of funds to draw from when a business owner needs capital. Unlike a traditional business loan, you have the flexibility to borrow up to a set amount (typically anywhere from $50,000 to $500,000), repaying only the amount you withdraw, with interest.  You can draw on your small business line of credit to handle cash flow gaps, get more working capital, meet payroll, purchase inventory or materials, or address almost any other emergency or opportunity.

Maximum loan amount

$5K - $250K

loan term

6 Months - 2 Years

interest rates

7% - 25%


As Fast As Same Day



Who Qualifies for a Line of Credit?

What types of businesses are eligible for this flexible financing?

A business line of credit is based on the monthly revenue and business owners credit score.  Newer, less established businesses might be able to qualify for short-term lines of credit, even with a short time in business. Medium-term lines of credit are more for businesses with good credit and a solid financial history.  Upwise offers a line of credit to businesses that have been in business for only 4 months. If you are looking for a larger line of credit, please ask one of our funding specialists about adding collateral or securing the line of credit with invoices, inventory, etc..  

The maximum line of credit limit, introductory term of the credit line, and repayment terms depend on your business’s revenues, credit rating, trade line history, time in business and other factors.

Business Lines of Credit: The Fundamentals

What exactly is a business line of credit?

Simply put, a lender gives you access to a specific amount of financing set by a credit limit, which you can draw from whenever your business needs the funds.  It allows access to capital at your fingertips when you need it. Log into your Upwise line of credit assigned portal, click and draw funds, it is that easy! 

However, you don’t make payments or incur any interest until you actually tap into those funds and draw them from your pool of funds available. You pay for what you use or draw and remember you are only charged interest while you are using the funds, so take advantage of this early payoff benefit, if you can.

Business lines of credit can come secured—backed by collateral like inventory, accounts receivable, and so on—or unsecured, backed only by your personal guarantee.  In some cases, a line of credit lender will file a UCC against the business while you are using the line of credit.

An Example of “Revolving” Business Lines of Credit

This sort of financing often gets referred to as “revolving” credit because you can tap into your credit limit over and over again.  And when you repay what you’ve spent, you can continue to draw capital from your line of credit. You will have access to the line of credit in the future when needed.  Some line of credit lenders will increase the credit limit as you build payment history with that lender.

For instance, say you’re given access to a $50K small business line of credit.

Now you only need $30k to purchase some inventory for your business, so you draw out the $30k, keeping the other $20K in the pool of available funds.

Once you pay back the $30K borrowed plus interest, you’ll have the full $50K line of credit again at your fingertips, without having to go through the application process and apply for another loan. You have the flexibility to pull on that $20K anytime needed in the future.  Each draw is considered separate and treated as its own separate payment schedule.

Remember you are only charged interest as you are using the funds, so you are also eligible for huge savings on interest, for paying the line of credit back early.  At each draw you will get an amortization schedule, which will show you the cost of the funds you draw, over the course of each month of the term. Many business owners use line of credit for short term bridge capital when an opportunity or something unexpected arises.

For Example:  Let’s say you have a 12 month term, which comes in a 12% interest rate.  For simplicity purposes, each month the lender is charging you 1% for using the money.  If you pay the line of credit off within just 3 months, you will not end up paying the full interest and would pay 3% for using the funds for 3 months.

The time and energy you save in having a business line of credit is one of the biggest benefits.  You will have access to your Upwise line of credit whenever you need financing in the future. Your line of credit limit can be increased based on payment history and underwriting evaluation.  

Most customers who were approved for a Line of Credit had:

**Based on Previous Upwise Clients

Annual revenue

Over $175K

Credit Score

Over 500+

Time In business

Greather than 1 Year



Are you Interested? Don’t wait and Apply now!

Upwise Capital offers a number of Line of Credit Products to help your business grow.

What does a Line of Credit Cost?

The basic cost of a business line of credit is completely straightforward.  Simply put, if you drawn from the line, then you pay back the amount drawn plus interest.  The cost of a business line of credit can vary based on whether the line of credit is secured or unsecured.   A line of credit is based on your personal credit score and average monthly revenue so the rates may vary. Unlike a traditional term loan which is funded in one lump sum with regular repayment terms, with an Upwise Line of Credit you will only pay interest in the funds you chose to draw. 

An Example of Withdrawing Funds & Paying Them Back

Let’s say a construction company receives a large job and does not have the funds to purchase materials for the upcoming job and cover payroll.  And this is not the first time this has happened, unfortunately. The owner calculates that he needs $50k to cover the material for the new large job and payroll. 

For this example, lets say that a $50k cushion would prevent issues like this from happening in the future.  As the business owner you know your construction job will be paid within 90 days.

So you reach out to Upwise Capital and apply to open a small business line of credit of up to $100K.

Next time you need to purchase materials for a new large job and cover payroll, you can draw funds on the business line of credit to cover your debts.  You will have access to the $100k business line of credit anytime you need it in the future. If you pull out $50k for materials and to cover payroll and paid the funds back in 90 days when you get paid from your customer, you will only be charged interest while you are using the funds.  The Upwise line of credit offer flexibility and peace of mind, that funds will be available in case you need them in the future or today.

Business Line of Credit
$5K - $250K

7 % - 25 %
Rates and Terms are determined by your business qualifications & Credit score

Invoice Line of Credit
$100K - $10M

7 % to 15 %
Rates and Terms are determined by Invoice or Purchase Order used as collateral

be Prepared

Documents Required for a LINE OF CREDIT

The best strategy to follow before you apply for this type of financing is to be prepared. The more readily available your documentation is, the faster you’ll move through the process.

The following is a checklist of the most commonly collected documents. For this product, the application process is very simple.

Unsecured Line of Credit - Quick & Easy Process

Bank Statements

We require at least 3 months of your business bank statements. If showing more gives us a better picture on how your business performs, feel free to send us a full year of statements. You may have more than one business bank account, so please make sure to include these statements for each account.


Our simple application will tell us your basic business and personal information. It takes less than 5 minutes to fill out. Click Here to fill out the Application.

Secured Line of Credit - Typically Secured by Account Receivables

Bank Statements

We require at least 6 months of your business bank statements. If showing more gives us a better picture on how your business performs, feel free to send us a full year of statements. You may have more than one business bank account, so please make sure to include these statements for each account.


For a secured Line of Credit, there are a few options to use as collateral to secure the loan. Aging Account Receivables, Inventory and Invoices are the most common. If using your A/R, we will need a copy of your Aging Account Receivables Report (A/R Report). If secured using your Inventory, we will need a Inventory List.

Driver's License & Voided Check

To ensure all of your information is correct on the contracts, we require a clear copy of you DL & VC to verify this information.


For larger dollar amounts above $100K, underwriting may request to see Tax Returns, P&L and Balance Sheet.

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