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How to Get a Stated Income Business Line of Credit

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What Is a Stated Income Business Line of Credit and How Does It Work?

Stated income business lines of credit, unlike a term loan that provides a lump sum upfront, is more flexible in that you have a pool of funds that you can draw on it as you need up to a credit limit. This product usually has a principal and interest rate and you are only responsible for paying interest on the current balance once payments are due. Rates and costs due vary depending on credit and qualifications. What’s different about stated income business credit line is that income is not verified or stated, therefore no financials and/or documents that relate to income such as tax returns, profit & loss or other income verifying documentation that are normally required for a traditional business line of credit are required. A stated income business line of credit is a fantastic option for some individuals looking for cash flow.

Who Can Qualify for a Stated Income Business Lines of Credit?

Minimum qualifications typically are:

  • Minimum 6 months in business
  • Personal Credit score above 500
  • $200,000 in annual revenue
  • Most Business types/Industries accepted
  • No personal collateral required

What Is Needed to Apply for a Stated Income Business Line of Credit?

There are only a few documents you may need to apply and be qualified for a stated income business line of credit. These include but are not limited to*:

  • 1- Page Loan Application
  • Business Bank Statements
  • Merchant Processing Statements (if applicable)

Stated Income Business Lines of Credit Product Overview

Interest Rates: Interest rates or Factor rates (vary depending on credit, time in business)

Repayment Terms: Repayment period (6 to 12 months)

Fees: Origination Fees 0% to 3%

Payments: Monthly, Bi-Weekly, Weekly

Credit Profile: Poor to Excellent personal credit accepted

Time in Business: Minimum 6 months in business

Documentation: Application, 3 months business bank account. No income verification doc required

Processing Time: Fast Funding: Same Day to 48 hour

Income Verification: No profit & loss required

Why Stated Income Business Credit Lines Are Popular With Small Businesses

  • Instant access to money on demand
  • Provides Emergency Cash Flow
  • No Income documentation required

Benefits of a Stated Income Business Line of Credit: Most Common Uses of Stated Income Business Lines of Credit

  • Working Business Capital
  • Improve Cash Flow
  • Purchase New or Used Equipment and/or software
  • Business Expansion (money to grow your business)
  • Employee Recruitment
  • Marketing/Advertising for Customer Acquisition
  • Emergencies that require financial aid

Businesses/Industries That Often Use Stated Income Business Lines of Credit

  • Restaurants
  • Retail Merchandise Stores
  • Main Street Retail Businesses
  • Auto Repair Shops
  • Hair, Nail Salons & Spas
  • Convenience Stores & Food Markets
  • Almost any business type that meets minimum revenue requirements

What Small Businesses Should Look Out for in a Stated Income Business Line of Credit: The Pros and Cons


  • No Income Verification  (stated income)
  • Most Industries acceptable
  • Lower personal credit score standards
  • Lower revenue requirements
  • No assets required
  • No personal collateral required
  • Flexibility for owners desiring a credit line for business to access funds on demand


  • Costs -The costs are more than traditional business financing to cover the additional risk that is involved with the lack of income verification.
  • Rates – The rates will be impacted by the lack of income proof

6 Alternative Business Financing Options for Small Business Owners

1. Short Term Small Business Loans

Short term business loans are defined as loans that are typically repaid with 6 to 18 months. This small business loan features a lump sum offered upfront with a fixed payback amount calculated using a factor rate over a short term of time. Reduced documentation requirements and credit tolerances that are laxer than traditional business loans is the reason business owners choose this type of business financing.

Product Overview

Rate: Factor rate range from 1.09% up to 1.45%

Terms: 6 to 18 months in duration (typically 12 months or less)

Payments: Weekly, Bi-Weekly and in some cases daily Monday-Friday

Credit Score: All personal credit types considered

2.Business Cash Advance

Business Cash Advances (BCA) is also known as the Purchaseof Future Sales Agreement that advances future sales at a discount to a business. The business is responsible for paying back a fixed payback amountknown as a specified amount, which is greater than the amount that was advanced to the business. This difference between the advance amount and the payback amount is called the “Factor Rate or cost,” which is a fixed cost. This is not principal & interest. The advance is repaid by taking a fixed percentage of future overall deposits called the specified percentage. The payments are collected by an ACH fixed daily or weekly payment deducted from a business bank account based on the specified percentage of future sales. At the end of every month, reconciliation can occur. If the fixed payments taken are more than the set future percentage of sales, an owner can request a refund back to the business for over payment so that the set specified percentage of sales collected for the business matches the revenue volumes. Repayment continues until the payback amount is paid back in full. There is no duration limit with advances as the fixed payback percentage ever changes due to fluctuating revenue.

Rate: The Factor cost will range from 1.09% up to 1.45%

Terms: No limits. Payments continue until paid in full based on specified percentage collection method and are dependent on future revenues

Payment: Weekly or daily Monday-Friday Fixed ACH

Credit Standards: Poor to Excellent accepted. All personal credit scores considered.

Collateral: No personal collateral required

Learn More

3.Merchant Cash Advance

A Merchant Cash Advance (MCA) is also known as a Purchase of Future Sales Receivables Agreement that operates very similarly to BCA’s, but the biggest difference is the repayment process, which is connected to the future credit card revenues instead of overall sales. MCA’s take a set percentage of future credit card sales at the time of batch of credit cards until the advance is paid back in full. Business owners find this valuable when they have fluctuating revenues and don’t want to be locked into a fixed payment that could negatively impact capital or margins if revenues decline or fluctuate. MCA is used primarily for working capital needs.

Product Overview

Rate: Factor cost will range from 1.09% up to 1.45%

Terms: No limits (payoff depends on future credit card sales)

Payment: Set fixed Percentage of future credit card revenues

Credit Standards: All personal credit considered from poor, fair, good or excellent.

Collateral: No personal collateral required

Learm More

4. Small Business Administration (SBA) Loans

The Small Business Administration (SBA) provides programs, guidelines, and loan guarantees to approved lenders for businesses throughout Arizona. The Small Business Administration SBA’s mission is to help Americans start, build, and grow their businesses successfully. The Small Business Administration (SBA) is not a lender. The SBA provides a guarantee that gives the approved lender ability to take on the risk of business lending under Small Business Administration (SBA) terms that they would not ordinarily do so on their own.

Product Overview

Rate: Interest starting at 5.50%, Treasury index plus 1% to 2.5%

Terms: 3 to 25 years

Payment: Fixed monthly

Credit Standards: Good to excellent personal credit  preferred, but all credit considered.

SBA Loan Programs

SBA Standard 7 (a) loan program- SBA loan 7(a) is the SBA’s primary program is designed to provide financial assistance to small businesses. The terms and conditions like the guaranty percentage and loan amount may vary by the type of loans to small business owners.

SBA Loan Program 504- The SBA 504 Loan is a powerful economic development loan program that will provide small businesses another avenue for business financing while promoting business growth and job creation. The use of proceeds from SBA 504 Loans must be used for fixed assets such as construction, commercial real estate, land or land improvements (and certain soft costs), or can also be used to refinance existing debt.


SBA Express

Description: Fast turnaround, streamlined process Easy to use line of credit

Maximum Loan: $500,000

Use of Proceeds: May be used for revolving lines of credit (must have a period not less than draw period) or for a  loan. Same as 7 (a)

Maturity: Same as 7 (a) except LOC: Revolving maturity up to 10 years.

Maximum Rate: $0-$50,000 Prime +6.50%  $50,000+Prime +4.50%


SBA Non- 7 (a) Loans Microloans

Description: Loans through nonprofit lending organizations

Maximum Loan: $50,000

Use of Proceeds: Working capital, supplies, machinery & equipment, fixtures; etc. Intermediary may choose to refinance debt. Cannot be used for real estate.

Maturity: Not to exceed 6 years

Maximum Rate: 7.75% or 8.5% above intermediary cost of funds.

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5. Invoice Financing

Invoice financing advances the outstanding balance to a business owner to increase the speed of cash flow to the business. This solution provides cash quickly and there is no need to wait for outstanding invoices to be collected and received by the client with invoice financing in place. Invoice financing has affordable cost ranging from 1% to 2.5% fee off of the face value of the invoice advanced. This is an unsecured business financing option.

Product Overview

Rate: None

Terms: No limits

Fees: 1% to 3% fee based off Invoice. Monthly Service fees may apply depending on volume of invoices factored

Credit Standards: Credit of the Clients need to be favorable NOT the owner advancing off invoices.

Collateral: None

Learn More

6. Purchase Order Financing

Purchase Order financing offers business owners the ability to raise capital to pay suppliers upfront for verified purchase orders. Purchase order loans will finance an entire order or a portion of it, depending on the purchase order funder. When the supplier is ready to ship the order, the purchase order financing company collects directly from the customer. The purchase order funder will subtract their fee and then sends the balance of the invoice to your business. This is an unsecured business financing option.

Product Overview

Rate: None

Fee: 1% to 3% fee for each Purchase Order

Credit: All parties need favorable business credit history but all credit considered

Collateral: None

Advice and Tips about applying for a Stated Income Business Line of Credit

Always ask yourself the key questions when thinking about stated income business lines of credit. What types of business financing is offered? Does the Business Loan Originator have the experience and knowledge to assist me in finding the best product for my needs? Does the stated income business line of credit originator not only have great customer service on the origination of my advance but also on the processing, funding and servicing of my loan on the back end?

Once you make your decision on who you want to work with for your stated income business line of credit, you still are the final decider on what if any business finance product you choose. Always start by asking why do I need the money and how am I going to put it to good use? Have I been given all business funding options in the marketplace? Am I getting a competitive rate, costs and terms for my situation and credit profile? Have I done my cost verse benefit analysis for borrowing for the business? Depending on a wide variety of factors, like credit history or how you will use your business line of credit, you’ll be able to make informed decisions.

Always check your proposals and agreements for terms and conditions which should include the cost, all closing or funding fee, duration, payment frequency, personal or business guarantees and any collateral requirements.

Choose AdvancePoint Capital for your Stated Income Business line of credit needs

  • Experience– We have experience with many different industries
  • Trust– Excellent reviews and feedback
  • Loan Specialists – We are experienced business funding specialists
  • No cost, no commitment quotes
  • Products– A Variety of Business Loan Products. We don’t just offer what we have, we offer what’s available in the marketplace

Let’s get started and grow your business now!

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