Business Line of Credit

A flexible funding option for business expenses, with offer terms explained in plain English before you sign.

In plain English

A business line of credit gives a business access to a set amount of credit from a funding partner. You draw funds when needed, up to the available limit, and repay what you use under the agreement. As you repay, some lines let you access credit again, subject to the offer terms. Goldhour Capital is a brokerage that helps you compare offers from funding partners, not a provider that sets the terms.

How it works

From apply to paid off.

Apply once

Share basic details about your business, revenue, time in business, and funding needs through Goldhour's interactive or chat-style form.

Review possible options

Goldhour works to match your business with funding partners. These are typical fit markers, not automatic rejection rules. Funding options may be up to $2M.

Compare the written offers

A Goldhour specialist walks through available offers side by side, including cash that lands, each fee by name, total payback, payment expectations, term, and exit terms. The funding partner sets its offer terms.

Draw what the agreement allows

If you choose an offer and the funding partner completes its process, you can access funds according to the line's limit and draw rules. Check whether draws are requested as needed, how quickly funds become available, and whether minimum draw amounts apply.

Make payments and close out the balance

Follow the payment schedule in your agreement. Keep track of the outstanding balance, fees, and any rules for reusing available credit. Once the balance and any required charges are paid, confirm with the funding partner that the account is closed or available for future draws as applicable.

How it is priced

Pricing depends on the funding partner, the amount drawn, and the agreement. A line may charge interest on the outstanding balance, along with fees such as draw, maintenance, or origination fees, if listed in the offer. Some agreements may calculate charges differently, so do not assume that an unused limit costs the same as a drawn balance. Use the Offer Decoder to see the cash that lands, each fee by name, the payment terms, total cost or payback shown, term, and exit terms. Goldhour does not set these terms.

Reading the offer

Enter the written offer into the Offer Decoder to translate its terms into a side-by-side view. Check the approved credit limit separately from the amount you plan to draw, then look at cash that lands after any upfront fees, each fee by name, how interest or other charges are calculated, payment amount and frequency, term, and total payback or estimated total cost where the offer provides it. Review draw rules, whether payments change as you draw, renewal or reuse conditions, and exit terms, including any costs or notice requirements for closing early. Ask the funding partner to clarify anything missing or unclear before signing.

Open the Offer Decoder

Best for

Owners who want access to funds for uneven expenses, such as inventory, payroll, repairs, or seasonal needs.
Businesses that expect to draw funds at different times rather than take one lump sum for a single expense.
Operators who can track draws, balances, payment dates, and available credit carefully.
Owners who want to compare a credit line with other funding options before deciding.

Not ideal when

You need one fixed amount for a single purchase and do not expect to draw again.
Your cash flow cannot comfortably support the payments described in the written offer.
You need certainty about future access to the line, but the agreement allows the funding partner to change, suspend, or review availability.
You prefer a simple repayment structure and do not want to manage a changing balance or draw-related charges.

What it does well

Draw funds as business needs arise, within the line's available limit and agreement rules.
May provide access to credit again as you repay, if the agreement allows it.
Can help manage working capital needs that vary from week to week or season to season.
Goldhour provides a plain-English, side-by-side offer breakdown before you sign.
You work with one named Goldhour specialist before and after funding.

Trade-offs to weigh

The credit limit is not the same as cash received, and each draw can affect the balance and payment obligations.
Interest and fees vary by funding partner and agreement, and charges can make a line more costly than expected if you do not review them carefully.
Some lines have draw minimums, maintenance fees, renewal conditions, or limits on reusing repaid credit.
The funding partner controls underwriting, approval, available terms, servicing, and account decisions.
A line can encourage repeated draws, which may keep a balance outstanding longer.

Compared to the others

How it stacks up.

vs. Term loan

A term loan generally provides a lump sum with a set repayment structure. A line of credit lets you draw within a limit, often in multiple amounts, with charges and payments determined by its agreement.

vs. Business credit card

A business credit card is typically used for purchases and may have card-specific rewards or billing features. A business line may allow cash draws or transfers, but draw rules and costs vary by offer.

vs. Revenue-based funding

Revenue-based funding is commonly repaid through a share of business receipts under its agreement. A line of credit is a loan product with a credit limit and repayment terms set by the funding partner.

vs. Invoice financing

Invoice financing is tied to eligible unpaid invoices. A line of credit may be available for broader business needs, subject to the funding partner's rules and the credit line agreement.

Ask before you sign

Six questions worth asking.

What amount is the credit limit, and is there a minimum or maximum draw?
How is interest calculated, and does it apply only to the balance I draw?
What fees apply, when are they charged, and are there costs for an unused line?
What is the payment amount and frequency after each draw, and can payments change?
Can I reuse credit as I repay, and can the funding partner change or suspend access?
What are the term, renewal conditions, and exit terms, including any early payoff or closure requirements?

Have these ready

Recent business bank statements and revenue information.
Basic business details, including time in business and what the funds may support.
An estimate of how much you may draw and when you expect to need it.
A list of current business debt and regular payment obligations.
The written offer and agreement, including all fee schedules and draw rules.
Questions about cash received, interest calculation, payment schedule, total cost, renewal, and closing the line.

Questions

Is a business line of credit a loan?

Yes. It is a loan product arranged through funding partners. You may draw up to a stated limit, and you repay the balance under the agreement.

Do I have to use the full credit limit?

Not necessarily. Many lines allow draws below the limit, but minimum draws or other conditions may apply. Check the written offer before signing.

Do I pay interest on the full limit?

That depends on the agreement. Some offers calculate interest on the amount drawn and outstanding, while fees may apply separately. Confirm the calculation and any charges with the funding partner.

Can I draw again after making payments?

Some lines allow you to reuse available credit as you repay. The agreement may set conditions, and the funding partner may review or change availability.

How is a line of credit different from a term loan?

A term loan generally provides one lump sum. A line of credit provides access up to a limit, which may be drawn in parts, with payments and charges determined by the line's terms.

What does Goldhour Capital do?

Goldhour Capital is a New York business funding brokerage. We connect business owners with funding partners and explain offers side by side. The funding partner decides whether to offer funding and sets the terms.

What should I check in an offer?

Review cash that lands, every fee by name, how interest is calculated, payment amount and frequency, total payback or total cost shown, term, draw and reuse rules, and exit terms. Goldhour's Offer Decoder can help translate the written offer.

Who does Goldhour usually work with?

Owners we usually work with have been in business for 1+ year, have 550+ credit, and bring in $50K+ in monthly revenue. These are typical fit markers, not automatic rejection rules. Options may be available up to $2M, depending on the funding partner and the business.

Other funding types:Bridge funding Consolidation Equipment financing Invoice factoring Revenue-based funding SBA loans Term funding

Make the most of the light.

One short application. One company calls you. Every offer laid out in plain English before you sign.

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