Product comparison
Pick a line of credit for ongoing, fluctuating capital needs (you draw only when you need it); pick a term loan for a specific one-time expense (you want a fixed payment plan).
Last updated 2026-04-16
Two paths, side by side
The same business problem can take very different routes depending on what you optimize for. Here is the honest split.
Line of Credit
You have recurring capital needs of variable size, seasonal payroll, invoice timing, inventory rebuilds.
Wins for
Term Loans
You have a single, known capital need (buyout, renovation, equipment) and want it fully amortized on a predictable schedule.
Wins for
Side by side
| Factor | Line of Credit | Term Loans |
|---|---|---|
| Capital delivery | Revolving draws | Lump sum |
| Interest basis | Drawn balance only | Full principal |
| Rate | 1.5–3% per month on drawn balance | 8–25% APR |
| Term | 12-month revolving (renewable) | 6–36 months |
| Prepayment | Pay down anytime | Pay off early, rarely penalty |
Common questions
Pick a line of credit for ongoing, fluctuating capital needs (you draw only when you need it); pick a term loan for a specific one-time expense (you want a fixed payment plan).
You have recurring capital needs of variable size, seasonal payroll, invoice timing, inventory rebuilds.
You have a single, known capital need (buyout, renovation, equipment) and want it fully amortized on a predictable schedule.
Yes. Many ICG clients qualify for multiple products. Our underwriters will recommend the best fit based on your use of funds, time horizon, and qualification profile.
Ready when you are
Quick application. Real human review. We will tell you which fits.
