Line of Credit vs. Term Loan: Which Fits Your Business?

A term loan: one lump sum, one clear plan

A term loan gives you a fixed amount up front with a fixed repayment schedule. It's ideal when you have a specific project with a known cost — buying equipment, renovating, or opening a location.

A line of credit: flexible, on-demand capital

A line of credit lets you draw what you need, when you need it, and only pay for what you use. It's perfect for managing day-to-day swings, surprise expenses, and seasonal gaps.

Our revolving options let you draw and pay down on an unlimited basis for up to a year — so the same facility can flex with your business as needs change.

Which should you choose?

If you know exactly what you need and why, a term loan is clean and simple. If your needs are ongoing or unpredictable, a line of credit gives you flexibility. Many owners use both — and you don't have to decide alone.