Subordinated Debt Solutions for Small Businesses

Subordinated debt financing allows businesses to raise capital without giving up ownership. Positioned below senior loans, it provides additional funding for expansion, equipment, or working capital. Flexible repayment, fast approvals, and expert support make it a practical solution for growing companies seeking higher leverage.

Apply for Subordinated Debt

What Is Subordinated Debt?

Subordinated debt, also called junior debt financing or sub debt financing, is a type of business loan that ranks below senior loans in repayment priority. It provides businesses with additional capital for growth, expansion, or acquisitions.

This financing option allows companies to increase funding without giving up equity or violating existing senior loan agreements. Subordinated debt can also take the form of mezzanine debt and is commonly used by businesses in the USA seeking extra leverage for scaling operations.

Businesses can use subordinated debt to fund strategic initiatives, bridge financing gaps, or complement existing senior financing without impacting ownership structure.

3 Simple Steps to Get a Business Line of Credit

1 Apply Online

Submit a quick online application with basic business information. The process is secure, straightforward, and designed to avoid unnecessary delays.

2 Get Your Credit Limit

Review your approved line of credit amount, terms, and available balance. There’s no obligation to use funds until your business needs them.

3 Draw Funds Anytime

Access funds on demand whenever cash flow gaps arise. Use what you need, repay over time, and reuse your available credit as you pay it down.

Common Business Challenges Solved

  • Cash Flow Gaps

    Flexible lines of credit help businesses cover payroll, rent, and vendor payments during slow periods or while waiting on customer payments, ensuring smooth day-to-day operations.

  • Bank Rejections

    Traditional lenders often have strict credit and operational requirements. Alternative financing solutions provide access to working capital even when banks say no.

  • Slow Funding

    Quick approval and rapid funding allow businesses to seize growth opportunities, cover unexpected expenses, or invest in time-sensitive projects without waiting weeks for bank loans.

  • Unexpected Expenses

    Emergencies like equipment repairs, seasonal spikes, or urgent inventory needs can be funded immediately, preventing disruption to business operations.

  • Limited Growth Opportunities

    Access to flexible financing enables businesses to expand, invest in marketing, hire staff, or upgrade technology without depleting cash reserves.

Key Benefits

  • Fast Access to Capital

    Speed is a major advantage of modern business funding. Applications are streamlined, reviews are efficient, and approvals can happen quickly. Many businesses receive funding the same or next business day, allowing owners to act on opportunities, cover urgent expenses, or stabilize cash flow without delays common with traditional banks.

  • Flexible Use & Repayment

    Flexibility means capital works around your business, not the other way around. Funds can be used for payroll, inventory, marketing, equipment, or unexpected costs. Repayment structures are often aligned with revenue, helping businesses manage cash flow more comfortably during slower or seasonal periods.

  • Easier Approval Requirements

    Approval ease removes many barriers found in traditional lending. With reduced documentation, faster reviews, and more inclusive criteria, startups and growing businesses with limited credit history can still qualify. This makes funding accessible to a wider range of business owners.

  • Scales as Your Business Grows

    Scalability ensures funding can increase alongside your success. As revenue improves and performance strengthens, access to higher funding limits becomes possible without restarting the process, supporting long-term growth and expansion.

Common Uses for a Business Line of Credit

  • Working Capital

    Cover everyday operating expenses and manage cash flow gaps without committing to a fixed loan amount.

  • Payroll & Staffing

    Pay employees on time, hire temporary staff, or support growth during busy periods while keeping cash reserves intact.

  • Inventory & Supplies

    Purchase inventory or essential supplies as needed and repay as revenue comes in.

  • Marketing & Growth

    Fund marketing campaigns, advertising, or growth initiatives using only the capital you need at the time.

  • Equipment & Technology

    Invest in tools, software, or equipment upgrades that improve efficiency and support long-term operations.

  • Unexpected Expenses

    Handle emergencies, repairs, or short-term cash shortfalls with fast access to available credit.

Funding Criteria for a Business Line of Credit

Business Age

6+ Months

Your business should have an established operating history to demonstrate stability and readiness for a flexible line of credit.

Monthly Revenue

$5K+

Consistent monthly revenue shows your business can handle ongoing draws and repayments from a revolving line of credit.

U.S.-Based Business

Required

Eligible businesses must be registered and actively operating in the United States.

Industries

All

Businesses across all industries are considered, giving broad access to flexible funding solutions.

Credit Score

300-850

Even applicants with lower credit scores may qualify, making a business line of credit accessible to a wide range of companies.

Compare a Business Line of Credit with Other Funding Options

Business Line of Credit

  • Flexible access to funds as needed, draw only what you use
  • Repayments are based on what you draw, with replenishing credit
  • Supports day-to-day operations, payroll, and short-term growth
  • Approval depends on revenue history and creditworthiness
  • Ideal for managing cash flow, but requires active account management
VS

Revenue-Based Financing (RBF)

  • Repayments scale with revenue, reducing stress during slower months
  • Fast access to growth capital without giving up equity
  • Perfect for growing businesses or seasonal fluctuations
  • Funds can be used for expansion, marketing, payroll, or equipment
  • Offers predictable flexibility and supports scaling faster than a LOC
VS

Term Loan

  • Fixed loan amount with scheduled payments regardless of revenue
  • Best for one-time investments or long-term projects
  • Long approval process with more documentation required
  • Less adaptable to unexpected expenses or seasonal fluctuations
  • Can be costlier if cash flow varies

Why Choose a Business Line of Credit

  • Trusted Financing Partner

    We connect businesses with reputable lenders and flexible lines of credit, giving you confidence that your funding is secure, compliant, and reliable.

  • Tailored to Your Needs

    Our platform matches you with credit options that fit your revenue, cash flow, and growth goals—so you only consider solutions designed for your business.

  • Clear and Educational Guidance

    We provide easy-to-understand resources explaining how lines of credit work, repayment structures, and strategic uses, helping you make informed financial decisions.

  • Fast and Convenient Access

    Apply online in minutes with minimal paperwork. Quick evaluations mean you can access funds promptly while maintaining compliance and transparency.

  • Flexible Growth Support

    Whether covering daily operations, investing in growth, or handling unexpected expenses, your line of credit adapts to your business needs with ease.

Frequently Asked Questions

Is a business line of credit better than a loan?
A business line of credit offers more flexibility than a traditional loan. You only borrow what you need and pay interest only on the amount used. It’s ideal for ongoing or unpredictable expenses, while loans are better suited for one-time, fixed-cost purchases.
Can startups qualify for a business line of credit?
Yes, some startups can qualify for a business line of credit. Approval often depends on the owner’s credit score, revenue projections, and overall business plan. In some cases, a personal guarantee may be required to offset limited operating history.
Is collateral required for a business line of credit?
Not always. Many lenders offer unsecured business lines of credit that do not require collateral. However, secured lines backed by assets such as equipment or receivables often come with higher limits and lower interest rates.
How fast can I receive funding?
Funding speed depends on the lender, but many online lenders approve applications within 24 to 48 hours. Once approved, funds are often accessible immediately through online transfers, checks, or linked credit cards.
Does a business line of credit affect my credit score?
Yes, a business line of credit can affect your credit score. Responsible use and on-time payments can help improve your business credit, while missed payments or high utilization may negatively impact your score.
Can I reuse funds after repayment?
Yes. A business line of credit is revolving, meaning once you repay the borrowed amount, those funds become available to use again. This makes it a flexible, ongoing source of working capital.

Apply for Subordinated Debt

Get additional capital to support business growth with flexible subordinated debt financing.

Apply Now