How does a business line of credit work?
A business line of credit gives your company the flexibility to withdraw funds up to a predetermined credit limit. It can be used to manage unexpected expenses, act as a buffer during peak seasons, or enable investments in growth.
Unlike a traditional business loan, you only pay interest on the amount you use. Additionally, you can make multiple withdrawals throughout the year within your credit limit, making it a flexible financing solution.
Business credit vs. Overdraft
The company credit is not linked to an account
The limit for an overdraft can be changed at any time
It is more common with business credit for limited companies, as owners of individual companies may already have a private overdraft.
The limit for a business credit can be higher and can therefore also be used for bigger investments.
Business credit vs. Business loan
The repayment of the business loan follows a clear amortization plan.
With a business loan, you can determine repayments on an ongoing basis.
Business credit vs. Credit card
You do not get a card with a business credit, instead the limit is paid out to your business account.
The interest rate and fees for business credit are lower compared to business credit cards.
Some business loans have a card linked to the credit. So there is an opportunity to combine the benefits of a credit card with a business loan.
Business credit in three steps
Tell us about your company and your financing needs
Create the application yourself or book an appointment with one of our advisors free of charge.
We optimize your application
We ensure that your company is presented in the best possible way. Only 1 credit report is taken.
We help you choose the best proposal
Sign the agreement and get the money paid out. Usually within 1-10 days.
Business credit – liquidity when you need it
Access capital when you need it. With a business credit through Krea, you increase your company’s flexibility. The application is free of charge and non-binding, taking only a few minutes. You’ll receive a response within 24 hours and can choose from offers by various lenders.
Our most common questions about business credit
What interest rate is common for business credit?
Who can be a guarantor?
Can you apply for financing if a member of the company lives abroad?
Pros and cons of business credit
A business credit line can be the right solution depending on your situation. Read about the pros and cons to determine if it's a good fit for you. With a single application at Krea, you’ll receive multiple offers to choose from.
Pros
1
Capital available when you need it
2
Improved cash flow stability
3
No cost to pay back
4
Pay only for what you use
Cons
1
Usually more expensive than a business loan
2
The credit limit is generally lower than that of a traditional business loan
3
Personal guarantees are often required for the full amount with a business credit
Get business credit with better terms with Krea
Up to 30 banks are exposed to competition
Selection of our banks and lenders.




We expose most banks and lenders to competition on the market.
Business credit with guaranteed terms
You always get the same or better terms with Krea as with the lender.
Business credit: What does it cost?

How much does a business credit cost?
A business credit line typically comes with an arrangement fee and two different interest charges: a fixed annual fee (contract interest) and interest on the utilized credit amount (drawn interest). However, some banks and lenders may choose not to include an arrangement fee for the business credit.
- Contract interest is the fixed fee applied to the maximum credit limit that the company has been approved for. In other words, the higher the approved credit limit, the larger the fee.
- Drawn interest is the interest charged on the actual credit amount used. This is often a fixed rate but can also be variable with some banks and lenders.
Business credit with or without personal guarantee
Lenders often require a business mortgage as collateral, where the company pledges movable assets such as accounts receivable and inventory. When starting a business credit line, personal guarantees are frequently required, meaning you, as an individual, become personally liable for repaying the credit. The more collateral you can offer, the better the interest rate you can typically obtain.
How we save time for you
Krea does the work for you throughout the entire process
You get a personal advisor
When you start an application, you will be assigned an advisor dedicated to your business. The adviser's task is to ensure that you get the best terms possible.
Krea optimizes your application
We recommend how to improve your application. Based on 20,000 previous customers, we know how to get the best terms.
Part of Krea's team of advisors
We have helped over 20 000 businesses
Since 2018, we have helped more than 20 000 companies find better terms and take their business to the next level. Read more about Krea.