What you get from a line
A line of credit is access to a set amount that you draw on as bills come due. Pay down the balance when your customer pays, and the room is available again. We do not publish rates or terms, since they depend on the business. Funding runs from $25,000 to $5,000,000 and can arrive in as little as 24 hours.
It works best when the same cash gap returns every month. If the need is a single purchase, see term loans or equipment financing.
Oakland's cash cycles are long and layered
Wikipedia calls the Port of Oakland the busiest port in Northern California and notes nearly 200,000 jobs related to marine cargo transport in the Oakland area. Behind those figures sit small companies: customs brokers, drayage operators, warehouses, repair yards, packaging suppliers. Many of them pay drivers and crews every week and invoice customers on terms of thirty days or longer. See also our pages on port and logistics and trucking.
Elsewhere in the city, the same article describes start-up tech and green-energy companies in downtown neighborhoods such as Uptown, City Center, Jack London Square and the Lake Merritt Financial District. Their gaps are different: salaries and rent run months ahead of revenue. The tech page goes into that.
Draw rules that keep a line healthy
- Name the draw. "Payroll for the week of the 15th" is a use; "general" is not.
- Match the paydown. When the invoice behind the draw is paid, put the money back.
- Watch the trend. If the balance only climbs, the line is hiding a margin problem.
- Keep room. Leave unused capacity for the unexpected repair or the supplier who wants cash.
For illustration only: a hauling company draws $12,000 to cover two weeks of driver pay while a $20,000 invoice sits unpaid. When the invoice clears, it repays the draw and keeps the rest. The same company that only ever draws and never repays has a different problem.
Line, advance or term loan?
| Situation | Fit |
|---|---|
| Recurring gaps between invoice and payment | Line of credit |
| One large defined project | Term loan |
| Urgent, short-term need | Merchant cash advance, with caution |
| Seasonal or uneven revenue | Revenue-based financing |
Why Oakland owners keep a line unused
The most useful line of credit is the one you open before the squeeze, since a business with healthy deposits is easier to review than one in the middle of a crisis. Owners who think ahead set the line up while the bank statements look good, draw rarely, and treat the unused room as insurance against a late payment from a big customer or a repair that cannot wait. In a city where freight, hospitality and project-based work all produce uneven deposits, that planning habit is worth more than the product itself.
Applying
We consider FICO scores of 500 and above, ask for about three months of business bank statements, require no tax returns, and use a soft credit pull on a five-minute application. Sole proprietors can apply. For the broader picture, see the Alameda County overview or apply here.