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Term Loans & Lines of Credit

Two distinct financing products — each designed for different business needs. Learn how they work and which may be right for you.

Term Loans

A business term loan provides a lump sum of capital upfront, which is repaid over a fixed schedule — typically through daily, weekly, or monthly payments. Term loans are well-suited for businesses that have a specific, defined use for funds: purchasing equipment, covering a large expense, or financing a planned expansion. The repayment amount and schedule are set at origination, giving you predictable costs for the life of the loan.

Key Features of Term Loans

  • Lump-sum disbursement at closing
  • Fixed repayment schedule with predictable payment amounts
  • Best suited for planned, one-time capital needs
  • Available in short-term and longer-term structures
  • Can be used for equipment, expansion, inventory, or working capital
Term Loan — Qualification Requirements
  • 6+ months in business
  • 620+ personal credit score
  • $10K+ monthly gross revenue

Lines of Credit

A business line of credit is approved up to a set credit limit, and you draw and repay funds as needed — paying interest only on the amount actually used. Unlike a term loan, a line of credit is revolving: once you repay what you've drawn, those funds become available again. Lines of credit are best suited for managing cash flow, covering short-term gaps, or handling unpredictable expenses.

Key Features of Lines of Credit

  • Draw only what you need, when you need it
  • Pay interest only on the amount drawn — not the full limit
  • Revolving — repaid funds immediately become available again
  • No collateral typically required
  • Available to businesses with less-than-perfect credit
  • Flexible — use funds for any legitimate business purpose
Line of Credit — Qualification Requirements
  • 6+ months in business
  • 600+ personal credit score
  • $10K+ monthly gross revenue
Not Sure Which Is Right?

Our team will review your situation and recommend the product that best fits your business needs and goals.

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Common Questions

Frequently asked about Term Loans & Lines of Credit.

A term loan gives you a lump sum upfront with fixed repayments. A line of credit lets you draw only what you need, repay it, and draw again — you pay interest only on what you actually use.
Yes. RFR Capital lines of credit have no spending restrictions. Use them for inventory, payroll, emergency expenses, or any other business need.
Once your line of credit is established, funds are typically accessible within 24 hours. Subsequent draws are usually processed the same business day.

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