Small Business Lines of Credit – Funding for Today and Tomorrow

February 2

How a DreamSpring line of credit can provide security against the unknown 


Over the course of the pandemic, the ongoing economic impacts have forced entrepreneurs to take a hard look at their finances. As the global business community experienced faltering supply chains, shifting costs, and changing customer behavior, small business owners are working to stay afloat amid a sea of change. A flexible line of credit may be the life raft many entrepreneurs seek. 

Even in standard operating environments, business cycles often ebb and flow, creating a need for quickly accessible capital. Unpredictability can happen at any time; customers forget to make a payment, a key piece of equipment unexpectedly malfunctions, or a huge order requires quick purchases of inventory – each scenario challenging the cash flow of a well-managed business.  


DreamSpring small business line of credit can help with urgent capital needs today and liquidity for purchases tomorrow. 


Forbes Magazine recently called a line of credit “a handy way to access financing as needed” for the peace of mind and flexibility it provides. With an easy application process and affordable pool of funds, a DreamSpring small business line of credit can help with urgent capital needs today and liquidity for purchases tomorrow. 


Apply today and secure your small business future


How a small business line of credit works: 

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 Interest charges are only assessed on the money withdrawn, not on the entire limit.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. 

How a DreamSpring line of credit can help your small business: 

The Small Business Administration urges entrepreneurs to be “proactive and ready to deal with any unforeseen expenses” to maintain the health and viability of small businesses. A DreamSpring small business line of credit keeps cash readily available for your business, so you have the flexibility to pay bills and easily access funds. With a line of credit, there is no need to reapply for additional funds; simply draw down the available line, and as you pay funds back, they become available to you again. By only paying interest on the amount drawn, you can reduce your interest expense and reinject those funds into your business. 

How a small business line of credit differs from a credit card:  

With lower interest rates, fewer fees, and more flexible payment options, business lines of credit are often more beneficial than credit cards for small businesses. Unlike a credit card, small business lines of credit can be thought of as a cash account, offering ease of withdrawal and transfer of cash. This flexibility is either impossible or expensive to create with credit cards, which typically carry cash advance fees and withdrawal charges, or higher interest rates for the borrowed amount. Business credit cards are useful for online purchases or use by staff, but a line of credit is an affordable way to gain peace of mind for your growing business. 


 business line of credit with CDFI
Guillermo Alvorado, Cucuru Gallery Café, Colorado Springs, CO


Benefits of a DreamSpring Line of Credit 

  • Revolve your funds: when line of credit is repaid, funds are immediately available to be borrowed again 
  • Pay interest only on the money you borrow, not always the full value of your line of credit  
  • Keep a pool of funds available for unanticipated expenses 
  • Maintain lower interest rates, fewer fees, and flexible payment options 
  • Use your line of credit like cash 


DreamSpring, a national leader in nonprofit community development finance, can provide affordable lines of credit with fixed interest rates and lending team dedicated to your success. With a mission to catalyze positive economic change through small business support, DreamSpring provides the capital your business needs to thrive in an ever-changing environment and plan for the future ahead. 


Access your small business line of credit