A business line of credit gives a company a set borrowing limit to draw from when costs arise; interest generally accrues only on what has been drawn, and repaid amounts can be drawn again. Ivyview Lenders, a small-business funding broker in Greenville, North Carolina, explains draw periods, revolving and non-revolving lines and security, and introduces Pitt County owners to lending partners, which set limits and terms.
| What it is | A limit you draw against as needed |
|---|---|
| Interest | Generally charged on the drawn balance, not the full limit |
| Revolving or not | Revolving lines can be reused; non-revolving lines cannot |
| Common uses | Payroll in slow weeks, restocking, short receivable gaps |
| Who decides | The lending partner sets the limit, pricing and renewal terms |
| Office | 623 S Pitt St #24, Greenville, NC 27834 · (252) 318-3595 |
Limit, draw, balance: how a line works
The lender sets a limit, the most you can owe at one time. Each time you take money from the line, that is a draw, and what you owe is your balance. As you repay, the amount available rises again. Interest generally runs only on the balance, which is why a line can cost little in a month you leave it alone.
Draws usually land in your business checking account by online transfer or a request to the lender. Some partners set a minimum draw, and some charge for each draw or for keeping the line open; ask for the full list of charges before you sign.
Draw periods and repayment periods
Many lines run in two phases. During the draw period you borrow and repay freely, often with payments based on the outstanding balance. When it ends, the line may renew after a fresh review, or it may switch to a repayment period in which no new draws are allowed and the remaining balance is paid down on a schedule.
Lenders commonly re-examine lines at renewal and can reduce, freeze or close a line if the business's finances change. Treat a line as a tool you can use, not money the business is owed.
Revolving and non-revolving lines
| Revolving line | Non-revolving line | |
|---|---|---|
| Reuse repaid funds | Yes, up to the limit | No; each draw permanently reduces what is left |
| Typical purpose | Ongoing, uneven operating needs | A defined project paid for in stages |
| What ends it | A renewal decision or the end of the draw period | Reaching the limit or the end of the draw period |
Most of this page describes revolving lines, the kind used for operating costs. A non-revolving line behaves more like a term loan that is handed out in pieces.
Secured or unsecured
A secured line is backed by collateral, often receivables, inventory or a general lien on business assets, which lenders typically record with a UCC financing statement. An unsecured line has no specific collateral, though partners often ask the owners for a personal guarantee. Security, limits and pricing are all the partner's call.
Our guide to UCC liens in North Carolina shows what a recorded lien looks like, how to search for one, and why an existing blanket lien can affect a new request.
Payroll, restocking and uneven months
A line fits needs that repeat at different sizes, and payroll in a slow week is the textbook example. In Pitt County, retail employment in 2025 moved between 9,157 jobs in March and 9,638 in December (U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages 2025). Employment is not revenue, but a business that adds staff ahead of busy months often needs cash before those months pay for themselves. A line can carry the extra hours and stock, then be paid down as sales come in.
Other common draws: paying a supplier while a customer's payment is in transit, taking an early-payment discount, or handling a repair that will not wait. Retailers buying stock in volume can also compare inventory financing.
A line is a poor fit for long-lived assets, or for a loss that repeats every month. Drawing to plug a permanent hole leaves the business with a full balance and no room for the next real emergency.
Line of credit, term loan or merchant cash advance
Choose a term loan when the cost is known and one-time; it gives you a fixed schedule and no temptation to redraw. Choose a line when the timing and size of needs are uncertain.
Merchant cash advances are often offered to the same businesses. An MCA is not a loan: it is a sale of future receivables, collected from sales or by fixed debits, and its total cost is set at the start rather than accruing on a balance. The side-by-side guide merchant cash advance vs. line of credit walks through the differences.
What partners review, and where Ivyview Lenders fits
Partners commonly weigh time in business, how consistent deposits are in your bank statements, credit history, existing debts and, for secured lines, the collateral. Because a line is used again and again, some partners care most about whether deposits are steady enough to support ongoing payments.
Ivyview Lenders connects you with lending partners; partners make credit decisions and set rates and terms. Our job is to help you show how cash moves through your year, since that is what tells a partner whether a line makes sense. Call (252) 318-3595 or start online.
By Ivyview Lenders · Updated