BLO

3. Business Line of Credit
Business lines of credit let startup founders access money up to a set borrowing limit and on an as-needed basis. Interest only accrues on the portion of the line the borrower accesses, and amounts that are paid off can be reused until the draw period ends (up to five years). Borrowing limits are usually lower than for term loans—from $2,000 to $250,000—and APRs range anywhere from 5% to 80% or higher.

Still, this unsecured financing may impose more accessible eligibility requirements, making it an excellent choice for startup owners who need to cover ongoing business costs or other cash flow issues.