Line of Credit – Understanding repayment, fees, and use
Unlike a term loan where the borrower receives a lump sum and repays the total amount borrowed back in installments, a small business line of credit revolves; as borrowed funds are repaid, they are immediately eligible to be borrowed again. Borrowers are given a limit, which is the maximum amount eligible for withdrawal at any given time. Interest charges are only assessed on the money withdrawn, not on the entire limit. For entrepreneurs seeking short-term capital or a pool of funds available for unanticipated expenses, a line of credit is an efficient option.
To provide the best rates and terms for our clients, DreamSpring may require collateral for loan approval.
Effective July 20, 2024 DreamSpring offers uncollateralized options for applicants seeking less than $20,000 and with credit score above 650.