LOC’s come in different varieties but usually is a short-term “revolving credit” instrument issued by a bank or other non-bank financial institutions. The term “revolving” indicates that the business has an established credit limit that it can use repeatedly. The business can draw money off that credit line to cover expenses but must repay some, or all of the amount borrowed each month in order to keep the line open. Credit lines can be secured by a lien against business assets, real estate or even unsecured depending on the overall strength of the business. This type of financing is sometimes called a “credit line”, “bank line” or a “revolver”. BFC’s can make 1 to 5 points on the amount of the line.