Quick answer: A business line of credit is a flexible funding limit you draw against, repay, and draw again as needed. It’s often positioned as an unsecured, faster-to-access alternative to a term loan, though terms and eligibility depend on the lender. Speak to New Heights Finance to confirm which facility types are currently available through our lender panel for your business.
Related: Revolving credit facility · Unsecured business loans
Key facts
| How it works | Draw, repay, and redraw against an approved limit — not a single payout |
| Security | Often positioned as unsecured, though this varies by lender and facility size |
| Interest | Typically charged only on the amount drawn |
| Also called | Revolving credit facility — the same underlying mechanic, more commonly used by traditional banks |
| Who arranges it | New Heights Finance sends your application to our network of approved private lenders |
What is a business line of credit?
A business line of credit is a pre-approved amount of funding a business can access when needed, repay, and draw on again — rather than receiving one lump sum. It’s the same underlying structure as a revolving credit facility; “business line of credit” is simply the term more commonly used by fintech and alternative lenders, while South Africa’s major banks tend to call the same mechanic a “revolving credit facility” or “revolving facility.”
Business line of credit vs business loan
This is the comparison most people researching this term are actually trying to make.
| Business line of credit | Business loan | |
|---|---|---|
| Payout | Draw as needed, up to your limit | One lump sum |
| Interest | Usually only on what you draw | On the full amount from day one |
| Reapplication | Not needed within your limit | Required for each new loan |
| Best for | Recurring or unpredictable funding needs | A specific, known amount for a defined purpose |
| Security | Often positioned as unsecured; varies by lender | May be unsecured or secured, depending on the lender |
Neither is inherently cheaper or better — a line of credit suits ongoing or unpredictable needs, while a business loan suits a single, known funding requirement.
Is a business line of credit unsecured?
Many lenders market a business line of credit as an unsecured product, assessed on turnover and trading history rather than requiring an asset as collateral. This isn’t universal, though — the exact position depends on the lender and how large a limit you’re seeking. Speak to New Heights Finance to confirm the typical security position for lenders currently on our panel.
Can I get a business line of credit with no credit check, bad credit, or as a startup?
No legitimate lender extends business credit with genuinely no credit check — this phrase appears often in search data, but any lender assessing a real application will look at some combination of your credit record, trading history, and turnover. A weaker credit record can make approval harder but doesn’t rule it out everywhere, since some lenders weigh turnover and cash flow more heavily than a credit score. A business line of credit for a brand-new startup with no trading history is uncommon, since lenders typically need some track record to size a revolving limit responsibly.
What does a business line of credit cost?
Cost depends on the lender, the size of the limit, and your business’s risk profile. Because interest is usually only charged on what you draw, the total cost also depends heavily on how much of your limit you actually use.
FAQs
What’s the difference between a business line of credit and a revolving credit facility?
They describe the same underlying mechanic — a limit you draw against, repay, and redraw. “Business line of credit” is the term more commonly used by fintech and alternative lenders; “revolving credit facility” is the term South Africa’s major banks typically use. See our revolving credit facility page for the bank-side view.
Is a business line of credit better than a business loan?
It depends on your need. A line of credit suits recurring or unpredictable funding requirements where you don’t want to reapply each time. A business loan suits a specific, known amount for a defined purpose. Neither is universally cheaper or better.
Can I get an unsecured business line of credit?
Many lenders position a business line of credit as unsecured, based on turnover and trading history rather than an asset. This varies by lender and by the size of the facility you’re seeking.
Is there really a business line of credit with no credit check?
No — any lender assessing a genuine application will look at some combination of credit history, turnover, and trading history. Be cautious of any offer that claims otherwise.
Does New Heights Finance arrange a business line of credit?
New Heights Finance, as a broker, can advise on where a line of credit fits alongside other business funding options and matches applications to lenders on its panel.
Curious whether a business line of credit fits your business? Apply for business funding online.