Line of credit vs. term loan

Both fund an established business. One is a reusable limit you draw on; the other is one amount on a fixed schedule.

A Business Line of Credit

A revolving limit. Draw what you need, pay interest only on what's drawn, repay, and draw again. Fits uneven cash flow, inventory cycles, and opportunities you can't schedule.

A Business Term Loan

One amount, repaid on a fixed schedule. Fits a planned purchase, an expansion, or a one-time project where you know the number up front.

Same qualification picture

Both are document-based products. TK generally looks for a personal credit profile of 650 or higher, negatives ideally two or more years old, and bank statements that show consistent revenue. TK Capital Solutions is a funding brokerage, not a lender. Requirements vary by lender and program; nothing here is a promise of approval, amount, or timing.

Common questions

Can I have both?: Some businesses run a line for working capital and a term loan for a specific purchase. Whether that's sensible depends on cash flow and existing obligations.