Business HELOC
Fuel your business with a Figure HELOC
Access up to $750k5: Navigates to numbered disclaimer of your home’s equity to support your business — fast. It’s easier than ever for entrepreneurs to qualify by verifying their business income. The ability to redraw from your credit line as you repay makes it a flexible alternative to traditional business loans.1: Navigates to numbered disclaimer 9: Navigates to numbered disclaimer
Are you a small business broker? Work with Figure.
What is a HELOC?
A home equity line of credit (HELOC) is a revolving line secured by your home. You draw what you need (up to your credit limit), repay, and can draw again — similar to a credit card, but typically at lower rates because it’s secured.1: Navigates to numbered disclaimer 9: Navigates to numbered disclaimer
Why business owners should consider a HELOC for funding
Unlock larger amounts
Borrow from $15,000 up to $750,000 (depending on equity and qualification).5: Navigates to numbered disclaimer
Faster funding
Approval in minutes, funding in as few as 5 days (for qualifying loans).2: Navigates to numbered disclaimer
Flexibility
Draw, repay, and redraw up to 100% during the draw period.1: Navigates to numbered disclaimer 9: Navigates to numbered disclaimer
Digital convenience
100% online application; no in-person appraisal needed under $400k.5: Navigates to numbered disclaimer
How does a HELOC for business work?
A HELOC lets you unlock your home’s equity to access flexible funding for your business. With Figure, the steps to getting a HELOC are fast, digital, and designed with entrepreneurs in mind.
- A strong credit profile and payment history
- Available home equity
- Verifiable income
- Self-employed homeowners may qualify if they meet equity, credit, and income requirements.
- LLC owners can use a HELOC for business purposes, but remember — the loan is secured by your home as the homeowner, not by the LLC.
- 1
Prequalify online
See your options in minutes with no impact to your credit score.3: Navigates to numbered disclaimer
- 2
Verify property and income
Upload documents digitally; no in-person appraisal needed for loans under $400k.5: Navigates to numbered disclaimer
- 3
Get funded quickly
Eligible borrowers can get funding in as few as 5 days.2: Navigates to numbered disclaimer
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Draw and redraw
Use funds for business or personal needs; for Figure's fixed rate1: Navigates to numbered disclaimer option, each new draw locks a new rate at the time of draw.
Pros and cons of using a HELOC for business
When you run a small business, your personal and business finances often share the same bottom line. A Figure HELOC lets you tap into your home equity for fast, flexible funding that supports both — so you can keep your business moving and your personal life on solid ground.
- Qualify if your business is new or in a slow year (subject to overall eligibility)
- Flexible access to funds; a HELOC is revolving credit allowing redraws1: Navigates to numbered disclaimer 9: Navigates to numbered disclaimer
- Qualify for larger loan amounts by verifying your business income, too
- Potentially lower rates vs. many unsecured options4: Navigates to numbered disclaimer
- Reinvest in growth or bridge short-term cash flow gaps
- Avoid the hurdles of traditional business loans
- Possible tax advantages if used for qualifying home improvements7: Navigates to numbered disclaimer
- Your home secures the line — a Figure HELOC is a personal liability
- Repayment risk if revenue slows as payment obligations continue
- Impact on personal credit and borrowing capacity
- If the business fails, you’re still responsible for the HELOC
Entrepreneurship – powered by a Figure HELOC
I’ve never experienced a loan process that is streamlined and completely online before.
As small business owners, we spend anywhere from 12 to 16 hours per day at our shop. Not having to go elsewhere was huge.
— David, 53, coffee shop owner, Perryville, MO
Common uses of business HELOC funds
Startup and expansion costs
Equipment and inventory
Working capital
Emergencies and repairs
How much could I borrow with a HELOC?8: Navigates to numbered disclaimer
Figure offers lines of credit up to $750k5: Navigates to numbered disclaimer
You'll need to have a good credit score, have a reliable payment history, have a low enough debt-to-income ratio (DTI), and have enough available equity in your home to qualify. Figure now allows you to include business income in the DTI ratio, increasing the opportunity to qualify for a larger loan amount.
Adjust the chart below to create the custom amount that relates to you.
$800,000
Current Home Value
$550,000
Remaining Mortgage Amount
In this scenario, you could qualify to borrow up to
$90,000
Check your eligible amount*Based on borrowing 80% of your current home value
Figure HELOC vs. other business financing options
When you need capital to run or grow your business, the choices can feel overwhelming. Explore your options and see why our straightforward online application, quick funding, and competitive rates make us the smart choice for your financial needs.
| Figure HELOC | SBA loan (7(a)/504) | Business credit card | Business line of credit |
|---|---|---|---|
| Application process: 100% online, see your rate instantly | Extensive documentation | Online; instant decision possible with some issuers | Varies by lender |
| Prepayment penalties: Never | Yes on 7(a) terms ≥15 yrs if >25% prepaid in first 3 yrs (SRF) | None | Often none, varies by lender |
| Tax deductibility: Generally not deductible unless funds buy/build/improve the home securing the loan7: Navigates to numbered disclaimer | Interest typically deductible** | Interest typically deductible** | Interest typically deductible** |
| Funding speed: In as few as 5 days on loans of $400k or less2: Navigates to numbered disclaimer | Typically 30-90 days, SBA Express faster | Instant to a few days (virtual card numbers common) | Often 1-7 business days with online lenders |
| Average APR: Competitive, fixed and variable rates6: Navigates to numbered disclaimer | Prime + spread; 10.5–15.5% depending on term/amount**** | Often 1-7 business days with online lenders | Widely varies by lender from single digits to 30%+*** |
- * wallethub.com/edu/cc/business-credit-card-statistics/142187
- ** sba.gov/blog/5-tax-rules-deducting-interest-payments
- *** bankrate.com/loans/small-business/average-business-line-of-credit-rates/
- **** lendio.com/blog/sba-loan-interest-rates
Deciding if a HELOC is right for your business
When it can make sense:
- You have sufficient equity and a stable plan for repayment.
- You need flexible, staged funding (draw as needed).1: Navigates to numbered disclaimer 9: Navigates to numbered disclaimer
- You want potentially lower rates than many unsecured options.4: Navigates to numbered disclaimer
Questions to ask before applying:
- What’s my target use of funds and timeline?
- How will I repay if revenue dips?
- How does this affect my personal credit and future borrowing?
- Do I understand the draw and repayment mechanics and fees?
FAQs about business HELOCs
Many applicants complete the application in as few as 5 minutes; eligible loans can fund in as few as 5 days after verification.2: Navigates to numbered disclaimer
Figure offers lines from $15,000 up to $750,000, subject to qualification and state limits.5: Navigates to numbered disclaimer For properties located in Alaska, the minimum loan amount is $25,001 and for properties located in Texas, the minimum loan amount is $35,000.
Figure’s HELOC offers both fixed and variable rates. If you select a fixed-rate Figure HELOC, each draw locks in a fixed rate at the time of draw; that rate doesn’t change over time.1: Navigates to numbered disclaimer However, if you select a variable-rate Figure HELOC, the rate will adjust monthly based on the market.9: Navigates to numbered disclaimer
You can take additional draws during the draw period and then repay over the repayment period per your agreement.1: Navigates to numbered disclaimer 9: Navigates to numbered disclaimer Specific term options are provided during application and vary by state and qualification.
Generally, HELOC interest is deductible only when used for qualifying home improvements; business use typically isn’t deductible against personal taxes. Consult a tax professional.7: Navigates to numbered disclaimer
Like any credit line, it can impact credit utilization and payment history. Prequalification with Figure doesn’t affect your score.3: Navigates to numbered disclaimer
Yes, if you qualify. It's important to understand the risks: a Figure HELOC is secured by your home, so ensuring you have a clear repayment plan is important.
Related resources
- Debt ConsolidationFigure Out: Small business owners buried under $130,000+ debt no more
Figure Editorial Team article author
- Home Equity 101How to calculate home equity: A step-by-step guide
Alysse Guitar article author
- Home Equity 101What is a home equity line of credit (HELOC)?
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