A business line of credit is a borrowing limit a business draws against as needed, paying interest only on the drawn balance; on a revolving line, repaid amounts can be drawn again. Kitehill Commercial Capital, a small-business funding broker in Greenville, South Carolina, helps owners decide whether a line fits and connects them with lending partners, which decide and set terms.
| Built for | Recurring needs of different sizes |
|---|---|
| How it pays out | Draws up to a set limit |
| Repayment | Payments on the drawn balance; repaid amounts revolve on a revolving line |
| Watch for | End of the draw period, renewal reviews, charges for keeping the line open |
| County context | 942 specialty trade contractor employers in Greenville County in 2023 (Census CBP 2023) |
| Decision and pricing | The lending partner, not Kitehill Commercial Capital |
| Office | 101 W Court St, Greenville, SC 29601 · (864) 302-0567 |
What it means to draw on a line of credit
A draw is simply taking money out of the line, up to the available limit. You might draw to cover a supplier invoice on Monday and draw again for a materials order the following month. Interest, and any charge per draw, applies to what you have drawn, not to the full limit, although some lines also carry a charge for keeping the line open. Ask which applies.
Each partner sets how draws work: a transfer to your business checking account, a card linked to the line, or a request through an online portal. Some set a minimum draw.
Draw periods and repayment periods
Many lines have two phases. During the draw period you can take money out, often making payments that cover interest or a small share of the balance. When the draw period ends, the line may move into a repayment period, during which no new draws are allowed and the remaining balance is paid down on a schedule. Other lines simply renew for another term after a review.
Read when the draw period ends and what happens to the balance at that point. A line that converts to a fixed repayment schedule can raise the monthly payment sharply in the very month you are used to drawing.
Revolving or non-revolving?
| Feature | Revolving line | Non-revolving line |
|---|---|---|
| After you repay | The repaid amount can be drawn again | The repaid amount does not become available again |
| Typical use | Recurring needs of different sizes | A project funded in stages |
| What to watch | Renewal reviews and changes to the limit | When draws must be completed |
A non-revolving line behaves a little like a term loan delivered in pieces: useful when a project's costs arrive in stages and you do not want to pay interest on money you have not spent yet.
Secured and unsecured lines
Some lines are secured by business assets such as receivables, inventory or equipment, and the partner files a UCC financing statement to record its claim. Others are unsecured, which usually means a heavier look at cash flow and credit, and often a personal guarantee from the owners. Lines secured by stock can work much like inventory financing; dealers who finance stock unit by unit use a related structure explained in floor plan financing explained.
Can you use a line of credit for payroll?
Yes, many owners keep a line for exactly that: covering wages in the weeks between paying the crew and getting paid by the customer. The habit to avoid is drawing for payroll month after month without the balance ever coming back down. A line that stays fully drawn is no longer smoothing timing; it has become long-term debt priced like short-term money. If that is happening, a term loan or a hard look at margins may serve better.
Who tends to use a line in Greenville County
Lines suit businesses whose costs and income move in different rhythms. Specialty trade contractors are a good example: Greenville County had 942 specialty trade contractor employer establishments in 2023, 61.7 percent with fewer than five employees (U.S. Census Bureau, County Business Patterns 2023). Retail is another, with 1,907 retail employer establishments in the county that year (same source) buying stock in one season and selling it in another. Funding by industry covers the confirmed sectors, and the Greenville, SC page has the wider county data.
How Kitehill handles a credit line request
Before we send a line request anywhere, we look at how often you would draw, how large a typical draw is and how quickly the balance comes back down. If the pattern is really a single purchase, we will say so and point to working capital or a term loan instead.
Call (864) 302-0567, come by 101 W Court St, or send a request online. How a request moves covers the stages, and the comparison page lines up all six types.
By Kitehill Commercial Capital · Updated
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