No. A line of credit gives you a limit; you draw what you need, pay on what you draw, and the available balance goes back up as you repay. An advance deposits a lump sum.
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A line of credit limit is not deposited into your account. It is the maximum you can borrow. You draw only what you need, pay interest or fees on what you have drawn, and the available amount replenishes as you repay.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
A person reviews your revenue, time in business and bank activity, often within hours.
Advances, lines of credit and second-position options in one place.
A human reads the file, not just an algorithm score.
Net cash, total payback and payment shown before you sign.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
When a line is approved, the lender sets a credit limit, for example $50,000. Nothing is deposited at approval. When you need funds, you request a draw, and that amount is transferred to your business account. If you draw $15,000, your outstanding balance is $15,000 and your available credit is $35,000.
Repayment works per draw. Many online business lines set a repayment schedule for each draw, often weekly or monthly over a set number of months, with interest or a fee on the drawn amount. As you repay principal, available credit rises again, so you can draw again without reapplying, subject to the lender terms.
Costs vary by structure. Some lines charge interest only on the outstanding balance; others charge a fee per draw; some have maintenance or inactivity fees on the line itself. Ask how costs are calculated before accepting, because an unused line can still carry fees.
This differs from a merchant cash advance, which deposits a lump sum at funding and is repaid through remittances until a fixed total is reached. Additional funds from an advance require a renewal or new agreement rather than a draw.
Lines usually require stronger profiles than advances, often more time in business and higher credit, but they are valuable for recurring needs because you only pay for what you use. A line opened during a strong period and used sparingly can be a low-cost safety net.
MFE offers both lines of credit and advances, so you can compare a revolving line with a lump-sum option through one application.
Here is a lump-sum advance for comparison with drawing on a line. Illustrative numbers.
| Amount funded | $50,000 |
| Factor rate | 1.38 |
| Total payback (amount × factor) | $69,000 |
| Fees deducted at funding (5%) | $2,500 |
| Net cash you receive | $47,500 |
| Weekly payment over 40 weeks | $1,725 |
| Same total as daily debits (~200 business days) | $345/day |
Illustrative numbers only. Your offer depends on your file; always compare net cash and total payback in writing.
| Credit limit | Maximum available, not deposited |
| Draw | Amount you request and receive |
| Outstanding balance | Drawn and not yet repaid |
| Available credit | Limit minus outstanding |
| Costs | Interest, draw fees or maintenance fees |
Good fit:
Probably not yet:
No, you draw what you need up to the limit.
Usually only on drawn amounts, though some lines charge maintenance fees.
Repay what you drew; available credit replenishes.
An advance deposits a lump sum repaid to a fixed total.
Often, with more time in business and higher credit.
Yes, but ask about fees on unused lines.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
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