Line of credit
A revolving borrowing limit you draw on as needed and repay as cash comes in.
A business line of credit is a revolving limit from a bank or other lender. The business draws what it needs up to the limit, repays as receivables are collected, and pays interest only on the amount outstanding. Invoices stay with the business and customers pay the business directly.
Qualifying typically depends on the business's own financials: time in business, statements, tax returns, credit and often collateral or a personal guarantee. Lines are usually reviewed periodically and carry conditions in the agreement. A line sized to a measured float, drawn against specific invoices and repaid when they clear, is a common way established businesses fund a recurring gap.
General information, not legal or financial advice.