Your Local Brokers Baseline Finance
Your Local Brokers Baseline Finance
A Line of Credit is a flexible funding facility that gives businesses access to a pre-approved pool of funds that can be drawn, repaid, and drawn again as needed. It’s designed to help businesses manage everyday cash flow fluctuations, fund short-term needs, or seize unexpected opportunities — without applying for new loans each time.
You only pay interest on the funds you draw down, making it a highly adaptable solution compared to fixed-term loans.
A lender approves a credit limit based on your financial strength and/or security offered.
You can draw down funds as needed, up to the approved limit.
As you repay amounts drawn, the available balance increases — similar to a credit card for businesses.
Interest is charged only on the drawn amount, not the entire limit.
Depending on the facility, a Line of Credit can be either
Secured (e.g., by property or business assets), or
Unsecured (based on strong trading history and financials).
Credit Limit
Typically from $50,000 to $5M+ depending on security and financials
Repayment Structure
Flexible — pay down and redraw at any time
Security
May be secured (property, business assets) or unsecured
Interest Payable
Only on funds drawn
Review Period
Annual or periodic reviews required
Use of Funds
Working capital, payroll, inventory, growth projects
✅ Highly flexible — draw and repay funds as needed
❌ May involve annual or facility fees even if unused
✅ Only pay interest on what you use
❌ Interest rates are often higher than standard term loans
✅ Immediate access to cash for business needs
❌ Facility reviews or renewals can tighten conditions over time
✅ Can act as a financial safety net without committing to long-term debt
❌ Can create cash flow strain if overused without discipline
Facility
Best For
Flexibility
Security
Typical Speed
Debtor Finance
Unlocking cash from outstanding invoices
Medium-High
High
Linked to business accounts
Fast (24–48 hours)
The maximum amount available to draw at any time.
A fee charged annually or monthly for maintaining access to the facility, even if unused.
The funds currently used by the borrower (interest is charged only on this amount).
The portion of the facility available to draw if needed.
Secured facilities require collateral; unsecured lines rely on business strength alone.
A periodic lender reassessment of business performance and risk to maintain or adjust the facility.
At Baseline Finance, we specialise in finding flexible solutions for commercial borrowers — whether you’re fully documented or not.
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
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