Business Line of Credit
Am I Eligible for a Business Line of Credit?
To apply for Business Solutions offerings, business owners must first be members of Navy Federal Credit Union. Already a Navy Federal member, but not yet a business member? Join today.
Business Line of Credit
Need help managing working capital, operating expenses, cash flow or payroll? Our business line of credit could be an ideal solution for navigating your finances with greater flexibility.Footnote [1]
Highlights
- Revolving business line of credit for operational purposes
- Business line amounts starting at $10,000
- Variable rate tied to PrimeFootnote [1]
- Must be secured for amounts over $100,000Footnote [2]
- Fees applyFootnote [3]
Best for
- Established businesses
- Bridging cash flow gaps
- Business growth
- Unexpected expenses
- Other operational purposesFootnote [4]
- Businesses with annual sales of at least $100,000+
What You'll Need to Apply
Business line of credit requests must be discussed with a lending representative before applying.
- Completed and signed business loan application
- Business tax returns under existing ownership (most recent 2 years)
- Business plan may be required
- Personal tax returns for all owners/guarantors (most recent 2 years)
- Financial Statements (Balance Sheet, Profit and Loss, A/R A/P Aging Report, Debt Schedule)
- Personal Financial Statement for all owners/guarantors
- Proof of collateral
- Additional documentation may be required
- Personal guarantee
- Personal credit check
Ready to Apply for a Business Line of Credit?
Call 1-877-418-1462, 9 am to 5 pm ET, Mon.-Fri., and request to be connected with a business lending representative.
to become a Business Solutions member.
Checking Line of Credit
Get peace of mind with a checking line of credit,Footnote [1] an account that provides overdraft protection for your business checking account. With a preapproved limit, it helps safeguard your account from overdrafts and per-item overdraft fees, ensuring your business transactions continue smoothly without interruption.
Best for
- Overdraft protection of business checking account
- Offsetting short-term cash needs
Ready to Apply for a Business Checking Line of Credit?
For Single-Owner Businesses:
- Begin the application process by signing in to our secure portal using your Navy Federal personal credentials.
Sign in to Apply for Single-Owner Businesses
For Multi-Owner Businesses:
- Complete the application form and beneficial owner form (if required). Print them out and sign with a pen (digital signatures aren’t accepted). Then scan the signed document(s) and submit online.
You'll receive an update approximately 7−10 business days after you've submitted your request.
Submit Your Application for Multi-Owner Businesses
Note: If you’re a Navy Federal employee applying for business credit, you must contact Business Solutions by calling 1-877-418-1462 to apply.
How a Line of Credit Can Help Your Business
A line of credit gives your business quick access to funds—up to a set limit— that you can use to cover operating costs, manage seasonal fluctuations or take on new opportunities. Unlike a lump-sum loan, you can borrow, repay and borrow again as needed without reapplying each time—making it an ideal tool for managing your cash flow and providing working capital for your business. And you only pay interest on what you use. Plus, as a Navy Federal business member, you’ll get 24/7 account access with digital banking and dedicated small-business support.
Cash Flow Support
Have a temporary gap between revenue and expenditures or been hit with an unexpected expense? Maybe you have a seasonal business and need some help to tide you over in the off season. Just draw from your line of credit to cover what you need.
Growth and Other Opportunities
Imagine your business suddenly takes off. If you need to increase inventory quickly, need more space or can get lower prices if you buy larger amounts, a line of credit can help you seize the day!
Choose cards to compare
Compare Credit Lines vs. Other Business Financing Options
| Feature | Line of Credit | Term Loan | Business Credit Card |
|---|---|---|---|
| Best for | Ongoing or unpredictable expenses; bridging cash flow gaps | Major, one-time investments or expansion projects | Everyday business expenses and short-term purchases |
| Typical Use Cases | Managing short-term cash flow, covering recurring needs and providing overdraft protection | Buying equipment or real estate or funding expansion | Purchasing office supplies, paying for travel or covering emergencies |
| How Funds Are Accessed | Flexible access to funds up to a set limit | Lump sum provided upfront | Available as needed up to credit limit via card transactions |
| Interest Charges | Interest accrued only on amount used | Interest charged on the entire loan amount | Interest charged on unpaid balance; typically higher rates |
| Repayment Terms | More adaptable and flexible; you can pay down and reuse funds | Monthly payments required over a set term; fixed and predictable | Requires payment of the outstanding balance each month |
Frequently Asked Questions
What are the credit limits and repayment terms for Navy Federal’s business lines of credit?
Business line amounts start at $10,000, and interest is paid based on the outstanding amount with a balloon payment required at maturity. The line must be paid down annually.
What’s the difference between interest rates, fees and collateral when it comes to business lines of credit?
Interest rates are based on creditworthiness and will vary with the market based on The Wall Street Journal Prime Rate. Fees vary and can be discussed with a business loan officer. Required collateral may include business assets such as cash accounts, marketable securities, accounts receivable (A/R), inventory, commercial real estate and qualifying government contracts. Unsecured lines of credit generally do not require collateral outside of a blanket lien on all assets.
How does a business line of credit differ from a term loan?
Unlike a term loan with fixed payments on a lump sum, a business line of credit lets you access funds as needed up to a set limit and only pay interest on what you use, providing more flexibility for ongoing expenses. At maturity of the business line of credit, any outstanding balance will be due in one final payment.
What's the difference between secured and unsecured lines of credit?
Secured lines of credit require collateral that may include business assets such as cash accounts, marketable securities, accounts receivable (A/R), inventory, commercial real estate and qualifying government contracts. Unsecured lines of credit generally do not require collateral outside of a blanket lien on all assets.
How do I qualify for a business line of credit?
To qualify for a business line of credit, your business must first be a Navy Federal business member. Additionally, there needs to be an appropriate purpose for the funds (e.g., bridging gaps between accounts receivable and accounts payable). You’ll also need to meet certain credit and collateral requirements to qualify.
How does a business line of credit work?
A business line of credit is a financing option that allows your business to borrow up to a certain limit and only pay interest on the amount you use, with any outstanding balance due in one final payment at maturity.
Is it difficult to get a business line of credit?
The difficulty of getting a business line of credit depends on your business’s financial profile and how long it has been operating. A business with a strong personal credit profile for its owner/s, a well-prepared application, a business plan and financial projections, and proof of collateral for secured lines may increase the likelihood of an approved business line of credit request.
Can I get a business line of credit with no revenue?
Typically, no. In addition to revenue, your business must be able to supply tax returns, demonstrate strong personal credit for the owner/s, have collateral for secured lines and provide a personal guarantee.
Disclosures
A business line of credit (BLOC) is a credit product, and rates are based on creditworthiness and will vary with the market based on The Wall Street Journal Prime Rate. A business checking line of credit (CLOC) is a credit product with a fixed rate of 17.9% APR. CLOC repayment terms are 2% of the outstanding balance or $20, whichever is greater, and the total outstanding balance will be due when it is less than $20.
↵Eligible collateral may include: accounts receivable (up to 80% of qualified receivables and requires an all business assets lien); inventory (with advance rates determined by underwriting); and qualified real estate (with Navy Federal in first lien position).
↵Contact your business loan officer for more information.
↵Not to be used for real estate ventures.
↵The initial $50 annual fee is assessed with the first statement.
↵