Side by side
- Collateral: HELOC is secured by residential real estate; a business line is typically unsecured or backed by business assets
- Amount: HELOC $25K–$750K for qualified applicants; business lines vary with revenue
- Repayment: HELOC is fully amortizing over 10–30 years; business lines usually repay in months
- Qualification: HELOC relies on equity, credit and verified income; business lines rely on time in business and revenue
- Credit reporting: the HELOC reports on personal credit; many business lines report to business bureaus
Which to choose
Choose the HELOC for larger, longer-term needs when you have equity and want a lower monthly payment. Choose a business line of credit for short, recurring cash-flow gaps, or when you don't want to pledge real estate.
Business HELOC vs Business Line of Credit: terms at a glance
| Line amount | $25,000 – $750,000 for qualified applicants ($35,000 minimum in Texas) |
|---|---|
| Lien position | 1st, 2nd or eligible 3rd |
| Occupancy | Primary residence, second/vacation home or investment property |
| Terms | 10, 15, 20 or 30 years, fully amortizing |
| Funding | Generally fully drawn at closing; repaid principal may be redrawn |
| Credit | Primary residence tiers from about 600 FICO in limited cases; second home or investment generally 680+ |
| Max CLTV | Up to about 85% (primary, 1st lien); about 70–80% for investment property |
| Prepayment | No standard prepayment penalty |
| Use of funds | Legitimate business purpose only |
The Business-Purpose HELOC is offered through a third-party lending partner. Win-Win Capital Funding, LLC is an independent referral partner and may be compensated for applications submitted through this site. Win-Win does not make credit decisions. All loans are subject to credit approval, verified income, debt-to-income requirements, collateral review, title, valuation, state availability and other underwriting requirements, and terms may change without notice. Business-purpose use is required. A hard credit inquiry may be required. Borrowing against real estate places the property at risk if payments are not made.