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Term loan or line of credit — which one?

They solve different problems. One is a lump sum for a known cost; the other is a cushion for costs you cannot schedule. Here is both, with actual terms.

✓ Checking what you qualify for does not affect your credit score.

$10K–$250KTerm loan
$10K–$350KLine of credit
WeeklyLoan payments
DrawAs needed

Side by side

AmountTerm loan $10K–$250K  |  Line of credit $10K–$350K
TermTerm loan 12–18 months  |  Line of credit 12–36 months
How you receive itTerm loan: lump sum  |  Line: draw what you need, when you need it
InterestTerm loan: on the full amount  |  Line: only on what you draw
Origination feeTerm loan 0%  |  Line none
Maintenance feeTerm loan n/a  |  Line none
Early payoffTerm loan: 50% off remaining interest  |  Line: no penalty
ReusableTerm loan no  |  Line yes, as you repay
Decision / fundingSame day / next business day for both

Choose a term loan when...

You know the exact amount and it is a one-time cost. Equipment, a specific inventory buy, a build-out, consolidating a messy obligation into one clean schedule.

The 50% early-payoff interest discount makes it especially good when you expect to clear it ahead of schedule.

Choose a line of credit when...

The need is recurring or unpredictable. Payroll gaps, seasonal swings, waiting on invoices, or an opportunity that appears with two days’ notice.

You pay nothing to keep it open and only pay for what you actually draw, so it works as a standing cushion.

You do not have to decide before applying. One application returns what you qualify for on both, and you choose after you see the numbers.

How it works

1. Apply in minutes

A short application. No impact to your credit score to see what you qualify for.

2. Same-day decision

We review revenue, time in business and bank activity — not just a credit score.

3. Review your terms

You see the amount, the term and the total cost before you sign anything.

4. Funded next business day

Money in your account, typically the next business day after signing.

Common questions

Which is cheaper?

A line of credit usually costs less overall if you only need money intermittently, because you pay interest only on what you draw. A term loan can be cheaper for a known lump sum, especially with the 50% early-payoff discount.

Can I have both?

Applications are assessed on total obligation. It is possible depending on revenue and existing positions.

Which funds faster?

Both are same-day decision and next-business-day funding.

Which is better if I already have an advance?

Often the term loan, because a buyout replaces daily debits with a weekly payment. See MCA refinance.

Do I have to choose before applying?

No. One application covers both.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

Apply Now →