Business Lines of Credit (BLOCs)

What Are Business Lines of Credit? A Business Line of Credit (BLOC) is revolving cash you can draw from when needed — very different from 0% business credit cards.

  • Works just like a personal line of credit, but tied to the business.
  • You only pay interest on the money you use.
  • Can be re-used again once you pay it back.

Approval Requirements

Business History

Most banks want 1–2 years of business history before approving.

Credit Amount

General rule of thumb: they'll grant you 10%–20% of your annual revenue (sometimes less).

Requires a lot more documentation than credit cards:

  • Bank statements.
  • Profit & Loss statements.
  • Tax returns.

Some states and lenders offer low-doc options, but generally these are tougher to get than business credit cards.

Why Every Business Owner Should Have One

Business lines of credit are perfect for emergencies and short-term cash needs:

Earnest Money Deposits (EMD)

Real estate down payments

Payroll for employees

Deposits for projects or inventory

It's smart for every business owner to have at least one line of credit in their toolbox.

EIN-Only Options (Corporate Charge Cards)

There are EIN-only corporate cards like Brex, Ramp, Divvy, etc.

Card Type

These are technically charge cards, not revolving credit.

Credit Limits

May grant higher limits but must be paid off in 30 days.

Costs

Interest rates and fees can be higher.

Current Interest Rates

Right now, most BLOCs are in the 10%–15% range.

Example: $50K BLOC at 11% APR

If you draw the full $50K and pay interest only, the monthly payment would be about $458/month.

Positioning With Clients

Great to position as a "safety net."

Helps businesses cover gaps without maxing personal credit or missing opportunities.

Not as fast or simple as 0% credit cards, but more flexible for real cash needs.

Commission Note

Variable Commissions

Commissions vary based on lender and size, but approvals often lead to bigger downstream funding opportunities since these clients are usually more established.

Action Step

👉 Post in the community: If you had a $50K line of credit, what's the first emergency or growth situation you'd use it for?