HELOC (Home Equity Line of Credit)

What it is

A Home Equity Line of Credit lets qualifying homeowners borrow against the equity in their home to fund business needs. Because it's secured by real estate, HELOCs typically carry lower rates and larger available limits than unsecured business financing — making them a strong option for owners who have significant equity and want the lowest possible cost of capital.

Like a business line of credit, a HELOC is revolving — you draw what you need during the draw period and pay interest only on the outstanding balance, with funds available again as you repay.

Best for

• ✓ Homeowners with significant equity who want the lowest-cost capital
• ✓ Larger funding needs — expansion, renovation, or acquisition
• ✓ Owners comfortable using their home as collateral
• ✓ Businesses that want a long draw period rather than a lump sum

Requirements

• ✓ Sufficient equity in a primary or secondary residence
• ✓ Proof of homeownership and current mortgage standing
• ✓ Personal credit and income documentation
• ✓ Last 4 months of business bank statements