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Business loansLast updated: 14 Oct 2026
Business credit lines to keep your cash flow moving
Flexible funding you can draw on whenever your business needs it, and only pay for what you use.
Why get a credit line with Capitalise?
200,000+ UK businesses trust us
Business credit data powered by Experian
£2bn in funding approved
FCA regulated since 2016
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What is a business credit line?
A business credit line is a flexible funding facility that gives you an agreed limit you can draw from, repay and use again without reapplying. You only pay interest on the amount you've drawn, not on the full limit.
Rather than taking one large loan, you borrow what you need, when you need it. That makes a credit line well suited to everyday costs and the unexpected, such as seasonal dips, late customer payments or an urgent opportunity.
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How does a business credit line work?
At the end of the agreed term, the lender reviews the facility. If repayments have been kept up, it may offer to renew it, sometimes with a higher limit if your business has grown.
What types of credit lines are there?
- Explore lines of credit
Line of credit
A business line of credit works like a flexible pot of funds that you can access when you need it. You can draw down money, repay it, and use it again without having to reapply.
- Explore business overdrafts
Business overdraft
A business overdraft is linked directly to your business bank account. It allows you to temporarily spend more than the balance available, giving you a quick way to handle cash flow shortages.
- Explore revolving credit facilities
Revolving credit facility
A revolving credit facility lets you borrow, repay and borrow again up to your agreed limit. It is designed for regular, ongoing cash needs and works well for businesses with cycles of higher and lower income.
Which type of credit line is right for your business?
The right credit line depends on how your cash flows and how often you expect to need extra funds.
Credit line | Best for | Arranged with | Worth knowing |
|---|---|---|---|
Line of credit | Flexibility when you don't know exactly when you'll need funds | A bank or alternative lender | Rates can change with market conditions, and minimum monthly repayments apply. |
Business overdraft | Quick, temporary shortfalls in your account | Your business bank | Your bank can reduce or withdraw the limit, often at short notice. |
Revolving credit facility | Ongoing or predictable cash cycles | A bank or alternative lender | It's agreed for a set term, typically 6 to 24 months, before it's reviewed. |
Once you apply, your funding specialist will talk you through which option fits your business best. For a closer look at the differences, read our comparisons of a revolving credit facility vs a business overdraft and a revolving credit facility vs a line of credit.
How can a business credit line help your business?
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Support your cash flow
Stay on top of regular expenses such as payroll, supplier invoices and stock purchases, without eating into your cash flow.
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Prepare for the unexpected
Handle any business emergencies, repairs or sudden opportunities without delaying your plans.
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Grow with confidence
Have access to the funds you need to invest in marketing, hire new staff, upgrade your equipment or fulfil larger orders.
How much does a business credit line cost?
The cost of a business credit line depends on the type of facility, the lender and your credit profile. Because interest only applies to what you draw, how much you use and how quickly you repay it matter as much as the headline rate.
Cost | What it covers |
|---|---|
Interest | Charged only on the balance you've drawn, usually calculated daily. The lender sets the rate based on your business's risk profile. |
Arrangement fee | A one off fee for setting up your limit. As an example, high street banks typically charge 1% to 2.5% of an overdraft limit, though this varies by provider. |
Non utilisation fee | Some lenders charge a small fee on the part of your limit you don't use, so it's worth checking before you accept an offer. |
Always ask for the full cost breakdown before you compare offers. A lower rate with extra fees can end up costing more than a slightly higher rate with none.
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What do lenders look for when approving a business credit line?
Lenders want to see that your business can comfortably repay what it draws. Having these ready will help your application move faster.
Some lenders will also ask directors for a personal guarantee, particularly for unsecured facilities.
How to apply for a business credit line with Capitalise
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Tell us about your business
Start an application with Capitalise, tell us how much you'd like to access and what you'll use it for.
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Get matched with the right lenders
We match you from our panel of 130+ lenders with those most suited to your business and your needs.
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Compare offers and access your funds
Your dedicated funding specialist explains what lenders look for and helps you compare offers. Once you accept, your facility can be set up in as little as 48 hours.
Boost your business cash flow
Apply for a flexible credit line to access funding when you need it.
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