How we make money: The Business Funding Club is a referral service, not a lender and not a broker. We refer businesses that ask for capital to ROK Financial. ROK and the lenders it matches you with make every funding decision. ROK pays us when a business we refer receives funding. It is free to you, and nothing here is an offer of credit. Read the full disclosure.

Illustration of a partly unspooled steel cable reel on a workbench

Financing types

A line of credit covers the gap between paying for the work and getting paid for it.

A business line of credit lets you draw what you need, up to a limit the lender sets, repay it, and draw again. The Business Funding Club is a free referral club. We refer you to ROK Financial. ROK and the lenders it matches you with review every request and make every funding decision.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.

By Marcus L. Barber, Publisher · Reviewed by Marcus before publishing · Updated · How we write and check facts

What it is

A line of credit is revolving credit. The lender sets a limit. You draw against it when you need cash, pay back what you drew, and the limit opens back up as you repay[1]. You pay interest on what you have drawn, not on the full limit, and fees can apply on top of interest[2]. Some lines are unsecured. Others are secured by receivables and inventory, and the amount you can draw moves with the value of those assets[3].

Where it fits

  • A gap that repeats. You pay crews and suppliers every week, and your customers pay on 30, 60 or 90 day terms.
  • Seasonal swings, where you build inventory or add labor before the busy months and pay down as sales come in[4].
  • Covering mobilization costs on a new contract until the first progress payment arrives.

When it’s the wrong tool

  • Buying a truck, a building or a major machine. Long-lived assets usually match better with equipment financing or a term loan.
  • Plugging a loss that repeats. If costs run ahead of revenue every month, a line delays the problem and adds cost to it.
  • A balance you never pay down. A line that stays fully drawn is working like a term loan, usually with more fees and more reviews attached.

Ask before you sign

  • What will this cost in total dollars if I draw the full limit and hold it for the whole term?
  • What fees apply to each draw, and is there a fee just for keeping the line open?
  • Is the pricing fixed or variable, and what is it tied to?
  • What collateral secures the line, and do the owners have to sign a personal guarantee?
  • How are payments collected: monthly, weekly or daily? What is the minimum payment?
  • How often is the line reviewed, and can the lender lower or freeze the limit between reviews?

How a line of credit works day to day

  1. The lender sets a limit based on what it reviews: revenue, bank statements, time in business, and sometimes your receivables.
  2. You draw when a cost comes due, such as payroll, a materials order or a fuel bill.
  3. You pay interest and fees on what is outstanding[2].
  4. As your customers pay you, you pay the line down, and that amount becomes available again[1].

Lines secured by receivables often use a borrowing base. The amount you can draw rises and falls with your eligible invoices and inventory, and the lender watches that collateral closely[3]. It also means a customer who pays late can shrink your available credit.

The need is common. In the Federal Reserve's 2024 survey of employer firms, 51% named uneven cash flow as a financial challenge[5].

What ROK lists for this product

ROK describes its business line of credit as revolving credit you can reuse after repaying, with interest only on the amount drawn and fees in addition to interest. ROK lists uses such as inventory, payroll, marketing and bridging slow customer payments[2].

ROK's general application lists at least 4 months in business and $10,000 or more in monthly gross sales ($120,000 a year)[6]. ROK's line of credit page lists a longer time in business for this product, at least six months[2]. ROK and its lenders review every request and make every funding decision. The Club does not.

Reading a line of credit offer

A line has more moving parts than a loan, so read the offer slowly. California requires many non-bank providers to give a standard disclosure with a commercial financing offer. It shows the funds provided, the total dollar cost, the payment method, frequency and amount, the prepayment policy, and the cost expressed on a yearly basis[7].

New York goes a step further for lines of credit. The finance charge on an open-end offer is figured as if you drew the full limit and held it for the whole term[1]. That gives you a worst-case dollar number to compare across offers.

Industries where it comes up

ROK Financial lists this product on its own site. Read ROK’s page

Common questions

Do I pay interest on the full limit?

Generally no. Interest applies to the amount you have drawn and still owe[2]. Fees are a different matter. Some lines charge a fee on each draw, a yearly fee, or a fee for unused credit. Ask for every fee in writing and add them to the interest when you compare total cost.

Can the lender lower my limit?

Often, yes. Many lines are reviewed periodically, and lines tied to a borrowing base move with your receivables and inventory[3]. Ask how often reviews happen, what triggers a change, and how much notice you get. Don't plan payroll around credit that can shrink without warning.

What will ROK want to see?

Lenders commonly review bank statements, time in business, revenue, tax filings, a profit and loss statement and a balance sheet[8]. If your line would be tied to receivables, expect questions about your invoices and who your customers are. Having clean, current statements ready makes the review simpler. ROK and its lenders decide what they need for your request.

Does it cost anything to apply through The Business Funding Club?

No. The Business Funding Club is a free referral club, not a lender or a broker. We refer your request to ROK Financial. ROK and the lenders it matches you with review it and make the decision. ROK pays Digital Solomon when a referred business is funded. You never pay the Club anything, and you don't have to accept any offer.

Sources

  1. New York Financial Services Law Section 801: Definitions (Commercial Financing) New York State Senate, checked October 16, 2026
  2. Business Line of Credit ROK Financial, checked October 16, 2026
  3. Comptroller's Handbook: Accounts Receivable and Inventory Financing Office of the Comptroller of the Currency, checked October 16, 2026
  4. SBA lender resources: Partnering with SBA loan programs U.S. Small Business Administration, checked October 16, 2026
  5. 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey Federal Reserve Banks, checked October 16, 2026
  6. Business Financing application (ROK Financial partner page) ROK Financial, checked October 16, 2026
  7. California Financial Code, Division 9.5: Commercial Financing Disclosures California Legislative Information, checked October 16, 2026
  8. Small Business Loans ROK Financial, checked October 16, 2026

Before you start

What ROK looks for.

Stated plainly so you don’t spend time on a form that isn’t built for your business yet. These are the minimums ROK lists on its partner application. Meeting them is the starting line, not a decision.

  • 4 monthsminimum time in business
  • $10,000minimum monthly gross sales
  • U.S.based and operating

Credit history is one input among several. ROK reviews the whole picture: revenue, deposits, time in business, and what the money is for. What to have ready.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.