A business line of credit is a borrowing limit you draw from as costs arise, paying interest only on the outstanding balance and, in a revolving line, borrowing again as you repay. Oakwick Lending Group, a small-business funding broker in Concord, NC, explains draw periods and costs to Cabarrus County owners and introduces requests to lending partners, which make the decision and set rates and terms.
| Designed for | Costs that recur in different sizes and at different times |
|---|---|
| How it comes back | Payments on what is drawn; a revolving line frees repaid amounts for reuse |
| Interest | Charged on what is drawn, not on the unused limit |
| Watch for | Draw-period end dates, renewal reviews and fees on unused limits |
| Cabarrus County context | 493 specialty trade contractor employer establishments (Census CBP 2023) |
| Who decides | A lending partner; Oakwick Lending Group only arranges |
| Address | 4 Union St S, Concord, NC 28025 · (980) 352-5260 |
Drawing on a line of credit
When a partner approves a line, it sets a maximum. To draw is simply to move part of that limit into your business account, by transfer, check or card depending on the product. Draw as much or as little as the bill requires, as long as the total outstanding stays under the limit.
Interest starts on the day of the draw and is charged only on the balance actually out. An approved but unused limit usually costs nothing in interest, though some partners charge a maintenance or unused-line fee. Read the fee schedule as closely as the rate.
Revolving and non-revolving lines
On a revolving line, every dollar you repay becomes available to draw again, much like a business credit card but usually with a lower cost structure and larger limits. On a non-revolving line, repaid amounts do not come back: you can draw up to the limit during a set period, and once it is used, it is used. Non-revolving lines often fund a defined project in stages.
| Revolving line | Non-revolving line | |
|---|---|---|
| After you repay | The amount can be drawn again | The amount is retired |
| Typical use | Ongoing ups and downs in cash flow | A project paid for in stages |
| Ends when | The line is not renewed or is closed | The draw period ends or the limit is used |
Draw periods, repayment periods and renewals
Many lines have a draw period, the window in which you may borrow, followed by a repayment period, when the outstanding balance is paid down on a schedule and no new draws are allowed. Others stay open but are reviewed annually, and the partner may reduce or close the line at renewal if the business has changed.
Note both dates in your calendar. A line that closes during your busiest borrowing month is a cash-flow problem that a little planning avoids.
How interest is worked out
Most business lines charge a variable rate, quoted as an index plus a margin, applied to the daily balance. Your statement shows the interest for the period, and the minimum payment is often interest plus a small share of principal. Paying only the minimum keeps the balance outstanding longer and raises total cost, so plan repayment of each draw to match the income it was meant to bridge.
Who uses credit lines in Cabarrus County, NC
Businesses whose costs land unevenly get the most from a line. Specialty trade contractors are a clear example: Cabarrus County had 493 employer establishments in that subsector in 2023, and 57.8 percent had fewer than five employees (U.S. Census Bureau, County Business Patterns 2023). Material purchases, equipment repairs and draw delays arrive at different times on every job.
Residential building also moves in waves. Cabarrus County permits authorized 2,270 new housing units in 2023, 2,485 in 2024 and 1,991 in 2025 (U.S. Census Bureau, Building Permits Survey). Those counts cover new homes only, not commercial work or remodels, but they show how the volume of work available to local trades can change from one year to the next. Industry pages cover contractors, restaurants and medical practices in more detail.
Should it be a credit line or a term loan?
Choose a term loan when you know the full cost up front and want a fixed payoff date. Choose a line when you know a need will recur but not exactly when or how large. Some owners carry both: a term loan for the upfit and a line for the seasonal swings after it opens. For a one-off shortfall with a clear end, working capital financing may be simpler.
Partners commonly ask for bank statements, tax returns, financial statements and a debt schedule, and secured lines may involve a UCC filing on receivables or other assets. The full comparison sets all six options side by side, and the four steps describe what happens after you call. Cabarrus County context is on the local business page.
By Oakwick Lending Group · Updated