Wheatmead Funding, a small-business funding broker in Eau Claire, Wisconsin, arranges business lines of credit through lending partners. A line gives an approved limit to draw against when costs land, with interest charged on the drawn balance. It suits recurring, uneven costs; partners review deposits, existing debt and credit history.
| What it is | An approved limit you draw against |
|---|---|
| Interest | Charged on the drawn balance |
| Types | Revolving or non-revolving |
| Largest sector by employers | Health care, 421 establishments (Eau Claire County, WI, CBP 2023) |
| Ask about | Draw fees, annual fees, review clauses |
How a draw works
Once a partner sets the limit, you request a draw when a cost arrives, usually online or by a written line of credit draw request. The money lands in the business account, interest starts on that amount, and the rest of the limit stays untouched until you need it.
Some lines charge a fee for each draw or a yearly fee for keeping the line open, even if you never use it. Ask the partner to list every charge before you sign.
How payments on a line of credit are calculated
Most lines bill a payment based on the balance you owe that month. On some, the minimum covers only interest for a period; on others, each draw converts into its own short installment schedule. Either way, the payment rises as you draw more and falls as you repay.
Business line of credit interest is normally charged daily or monthly on the outstanding balance, not on the full limit. The rate itself is set by the partner and may be variable, so the same balance can cost a different amount next year.
Revolving and non-revolving lines
| Revolving line | Non-revolving line | |
|---|---|---|
| After you repay | The limit reopens for new draws | Money paid back stays closed to new draws |
| Typical use | Costs that recur at uneven times | A set project drawn in stages |
| Feels like | A reusable reserve | A term loan drawn in pieces |
A non-revolving line of credit suits a planned project with several payment stages; once the limit is used, the line is finished. Most owners asking about a line want the revolving kind.
Secured or unsecured lines
A secured line is backed by receivables, inventory or a general lien on business assets, which often supports a larger limit. An unsecured line relies on the business's record and usually a personal guarantee from the owners. Both are common; the partner decides which it will offer.
Recurring costs in Eau Claire County, WI businesses
Health care and social assistance had more employer establishments than any other sector in Eau Claire County in 2023 (421), followed by retail trade (382) and other services such as repair and personal care (306) (U.S. Census Bureau, County Business Patterns 2023). Each of these runs on payments that arrive later than the bills: insurers, card processors, customers on account.
A line fits those rhythms because you only carry a balance while waiting. See the sectors page for how partner-funded sectors tend to use a line, and the county business figures for the full sector list.
A Barstow Street rule of thumb: credit line or term loan
If you know the amount and the purpose today, such as a fit-out with a signed quote, a term loan gives one schedule and often a lower total cost. If the amounts and timing are uncertain, a line avoids paying interest on money sitting idle. For a single gap with a clear end, working capital financing may be simpler.
Hiring is a common reason owners ask for a line. Our post on covering payroll for a first part-time hire works through the timing, and every structure sits on the comparison page.
Records a partner reads before setting a limit
- Six to twelve months of bank statements showing regular deposits.
- Receivables aging, if the line will be secured by invoices.
- Existing credit lines and any balances outstanding.
- Tax returns or financial statements for larger limits.
- Owner credit history.
The full sequence from your first call is on how a request moves.
By Wheatmead Funding · Updated