 TITLE: What Is a Business Line of Credit? CONTENT: Where Can You Get a Business Line of Credit?\n--------------------------------------------\nYou can get business lines of credit from a variety of sources, including banks and online lenders and through the Small Business Administration (SBA). Here's a closer look at the pros and cons of each.\n*   **Traditional banks**: Banks typically have stricter lending requirements for lines of credit than online lenders do. For example, they are likely to require more documentation, expect to see higher credit scores and take longer to approve lines of credit. The tradeoff: Banks generally offer lower interest rates, better terms and larger credit limits. Your current business bank can be a good place to start investigating lines of credit; just be sure to shop around and see what other lenders are offering as well.\n*   **Online lenders**: There are plenty of places to apply for a business line of credit online. These include online lending marketplaces that match businesses with lenders and direct online lenders who make loans themselves. Both types of online lenders generally have a faster, simpler application process than banks. They may focus more on your cash flow than on financial statements, for example. They also tend to be more flexible than traditional banks in their approval criteria, so smaller, newer businesses that can't get credit lines from banks may want to try this option. Just keep in mind that online lenders generally charge higher interest rates than banks.\n*   **The SBA**: The SBA CAPLines program offers four types of credit lines: a seasonal line of credit, a working capital line of credit, a line of credit for builders and contractors, and a line of credit for subcontractors. You must meet the criteria for the SBA's 7(a) loan program to be considered for any of these credit lines. The SBA does not issue credit lines itself; instead, it works with approved lenders who do. The SBA guarantees a percentage of the credit line, making lenders more willing to extend credit to small businesses. Earning that guarantee isn't easy: This option is best for businesses with an established track record and the ability to provide solid documentation of their financial stability. END