A business line of credit (LOC) is like a credit card; a financial institution processes your application and determines the amount they are comfortable advancing to your business. Once approved, funds can be drawn directly into your business checking account, and you can use some or of all the amount you are approved for as you see fit. Interest is only charged on the amount you draw when you draw it and can be paid back immediately or over a specified period. Business lines of credit are revolving, which means that unlike a loan, the available funds replenish as they are paid back. Business lines of credit often come with lower interest rates and without the costly fees for withdrawing cash.