Business lines of credit may be secured or unsecured, and either closed or revolving.
Secured business lines of credit generally require collateral, while unsecured business lines of credit are approved based on your personal and business finances and creditworthiness.
Similar to a credit card, revolving lines of credit let you pay down and borrow against a replenishing credit limit multiple times, whereas closed lines of credit mean that your total available funds are dispersed in full to you at the start of the loan term.
Currently, a Business Line of Credit through Big Think Capital is unsecured and revolving, which is a relatively common option for small businesses.
