Product comparison
A term loan delivers a lump sum with fixed monthly payments; a line of credit gives you revolving access to capital and charges interest only on the amount you draw.
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.
Term Loans
You have a specific, one-time use of funds (expansion, equipment, buyout) and you want predictable monthly payments.
Wins for
Business Line of Credit
Your capital needs fluctuate (seasonal business, invoice-timing gaps, opportunistic buys) and you want to pay interest only on what you actually draw.
Wins for
Side by side
| Factor | Term Loans | Business Line of Credit |
|---|---|---|
| Capital delivery | Lump sum | Draws on demand |
| Interest basis | Full principal | Drawn balance only |
| Term | 6–36 months fixed | 12-month revolving (renewable) |
| Rate | 8–25% APR | 1.5–3% per month on drawn balance |
| Best for | One-time projects | Recurring fluctuations |
Common questions
A term loan delivers a lump sum with fixed monthly payments; a line of credit gives you revolving access to capital and charges interest only on the amount you draw.
You have a specific, one-time use of funds (expansion, equipment, buyout) and you want predictable monthly payments.
Your capital needs fluctuate (seasonal business, invoice-timing gaps, opportunistic buys) and you want to pay interest only on what you actually draw.
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.
