Credit Lines have the advantage of flexibility and are sometimes the only option for small business owners, however they also have limitations. Getting a line of credit increased once in place can be very difficult. Even if your business is successful, if you’ve maxed out your line of credit and need more money to expand, you’ll need to jump through a number of hoops with your bank to prove that you’re worth the risk and, in many cases, the less time you’ve been in business, the harder it will be to extend your credit line. So if you’ve found fast success, you’ll likely need to explore other options.

The best alternative for a credit line for small businesses is the SBA 7(a) loan program, which can provide working capital up to $350,000 for qualifying borrowers.