Yes — you can absolutely use a home equity line of credit (HELOC) to fund or grow your business, and for many owners it’s the smartest capital available to them. Here’s what you need to know.
What is a HELOC?
A HELOC is a revolving line of credit secured by your home. You’re approved for a limit, you draw what you need, you pay interest only on what you use, and you can draw again as you repay — much like a credit card, but at a far lower rate because it’s backed by your property.
Why business owners use a HELOC
- It’s cheap. Single-digit rates instead of the 40%+ effective cost of a merchant cash advance or the 20%+ of business credit cards.
- It’s flexible. Draw for payroll this month, inventory next month, and an equipment purchase next quarter — all from the same line.
- It’s fast. Many owners prequalify in minutes and fund in as few as five days.
- It fits the self-employed. Income can often be verified with bank statements rather than years of tax returns.
What can you use it for?
Just about any business purpose:
- Working capital and payroll
- Inventory and equipment
- Marketing and expansion
- Buying out a partner
- Consolidating or paying off high-interest debt (including existing advances)
How much can you borrow?
Lenders typically allow you to borrow up to 80–85% of your home’s value, minus your current mortgage balance, up to around $750,000. So if your home is worth $800,000 and you owe $550,000, you might access roughly $90,000–$130,000 depending on the program.
How to qualify
- Prequalify with a soft credit check (no score impact).
- Verify income — often via bank statements for self-employed owners.
- Confirm equity — an automated valuation or appraisal sets your available line.
- Close and draw — funds are typically available in days.
A property held in an LLC or revocable trust can still be eligible.
One important caveat
A HELOC is secured by your home. That’s what makes it cheap — and it’s also why you should borrow responsibly and have a clear plan to repay. Used well, it’s a powerful, low-cost engine for growth.
Want to see what you’d qualify for? Check your options in about five minutes.