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Marlese Lessing has been a writer for Bankrate since 2022. She brings a love of business finance and storytelling to her content creation expertise, alongside a background in B2B writing.
Rob is a Senior Editor at Bankrate.com. With over a decade of experience covering small business and tech content, Rob is passionate about giving readers the best possible information to help them make better decisions for their businesses.
Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group. Varied finance and accounting work includes the preparation of financial statements and budgets, the development of multiyear financial forecasts, credit analyses, and the evaluation of capital budgeting proposals.
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What to know first:
A business line of credit can provide fast and flexible capital for short term expenses, including payroll, seasonal costs, inventory, emergencies and more.
Business owners can draw as much or as little as they need within the loan limits, allowing them to draw exactly as much as they need. Check out Bankrate’s top picks for business lines of credit.
Get started on funding your business today
Answer a few questions and get matched with trusted financing solutions from our sponsored partner.
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From our product comparison tools to award-winning editorial content, we provide objective information and actionable next steps to help you make informed decisions. It’s why over 100 million people put their trust in us every year.
The listings that appear on this page are from companies from which this
website receives compensation, which may impact how, where and in what
order products appear. This table does not include all companies or all
available products. Bankrate does not endorse or recommend any companies.
Bankrate Score = 4.4/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$10k-$500K
Term: 4 - 24 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Hire new employees to support your business growth
Flexible payment options are available
Stock more best-selling items during your busy selling seasons
Maintain daily operations even through gaps in cash flow
Continue running your business seamlessly during seasonal lulls
Disclosures:
This is not a guaranteed offer of credit. Rates and terms for business credit products are subject to underwriting guidelines, may be provided by third parties, and are subject to lender approval. Approved funding amount is based on eligibility. Actual eligibility may vary. Restrictions may apply. Application is subject to approval by the lender and is based on factors such as business type, time in business, annual sales, average business bank account balances, personal credit and other variables deemed relevant by the lender. Products offered by National Funding, LLC and affiliates are business products only. In California, products are made or arranged pursuant to a California Financing Law License. License number: 603A169.
Pros
Access to high loan amounts
Offers early payoff discounts
Funding specialists available to help
Cons
Limited information on website
$250,000 minimum annual revenue requirement
WHAT TO KNOW
You can apply online or by phone. National Funding will connect you with a funding specialist to make sure you are getting the financing options that work best for you. National Funding charges an origination fee of between 1 and 5 percent and requires a personal guarantee. Repayment options are daily and weekly, but borrowers with a high personal credit score and strong financials may qualify for its monthly payment option.
National Funding operates in all states.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
660
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Yes
Minimum time in business requirement:6 months
Minimum business annual revenue:$250,000
Fundible: Bankrate 2025 Award Winner Best business line of credit
Bankrate Score = 4.7/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$5k-$500K
Term: 12 - 120 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
*Rates, terms, & payment structure may vary by state and lender. Rates shown reflect an average fixed monthly percentage. A hard pull may be performed based on the product and lender, applicant will be notified if a hard pull is required for approval. Decision and funding time are subject to applicant’s submission of all requested approval and closing documents. Minimum qualifications listed are not reflective of all programs, rates and terms may vary based on applicants qualifications. By supplying us with your information, you authorize Streamline Funding LLC dba Fundible and prospective third-party funding providers to contact you at the numbers you provide (including mobile) during any step of this application, via phone (including automated telephone dialing systems, prerecorded, SMS and MMS means) even if you are on a Do Not Call Registry. You are not required to agree to be contacted in this manner to apply with Streamline Funding LLC dba Fundible.
Pros
No prepay penalties
Fast funding
Low personal credit score requirement
Cons
May use a hard credit pull
May charge an origination fee of up to 3%
Loans secured by UCC-1 filing
WHAT TO KNOW
Fundible offers six types of business loans, including business lines of credit, bridge loans and SBA loans. Direct lending requirements for the business line of credit are steep, but loan requirements through its partner network are low: six months’ time in business, an annual revenue of $200,000 and provide three of the most recent business bank statements.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
580
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.2/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$10k-$500K
Term: 4 - 24 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Finance daily business operation and have flexibility for expansion
Access to short-term cash for immediate expenses like paying rent
Supplement late-paying clients
Get the funds to make improvements with renovations without impacting day-to-day cash flow
Cash flow for inventory, materials, and marketing
Disclosures:
This is not a guaranteed offer of credit. Rates and terms for business credit products are subject to underwriting guidelines, may be provided by third parties, and are subject to lender approval. Approved funding amount is based on eligibility. Actual eligibility may vary. Restrictions may apply. Application is subject to approval by the lender and is based on factors such as business type, time in business, annual sales, average business bank account balances, personal credit and other variables deemed relevant by the lender. Products offered by QuickBridge and affiliates are business products only. In California, products are made or arranged pursuant to a California Financing Law License. License number: 603J292.
Pros
Cons
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
660
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
No
Minimum time in business requirement:6 months
Minimum business annual revenue:N/A
Backd: Bankrate 2025 Award Winner Best lender for short-term business loans
Bankrate Score = 4.6/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$5k-$750K
Term: 6 - 12 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Backd’s lines of credit are unsecured with no personal guarantee required. Rates can go as high as 30% and a 3% origination fee applies. Borrowers can prequalify before applying. Backd reports payments to one business credit reporting agency.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
600
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.4/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$5k-$250K
Term: 6 - 12 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Bluevine accounts are FDIC insured up to $250,000 per depositor through Coastal Community Bank, Member FDIC. The Bluevine Business Debit Mastercard® is issued by Coastal Community Bank, Member FDIC pursuant to a license from Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. See the Coastal Community Bank Privacy Policy.
Application is subject to approval. No monthly or maintenance fees. Card Replacement Fees and Wire Transfer Fees may apply.
Banking Services for payments made via ACH or wire from the Bluevine Business Checking Account are provided by Coastal Community Bank, Member FDIC. Certain Bill Pay funds, including Bill Pay with Credit Card, are temporarily held during payment processing by Silicon Valley Bank, N.A., a full-service bridge bank created and operated by the FDIC. Bridge bank services are subject to change without notice and may not be offered continuously. Money transmission services for International Payments are provided by a third party and are also subject to their applicable terms and conditions.
The Bluevine Line of Credit is issued by Celtic Bank, a Utah-chartered Industrial Bank, Member FDIC. Applications are subject to credit approval. Rates, credit lines, and terms may vary based on your creditworthiness and are subject to change. Additional fees apply.
PPP loans are made by one or more approved U.S. Small Business Administration (SBA) lenders. Loan agreements will identify the issuing lender to small businesses at signing. Qualified applications will be submitted to the SBA as soon as possible. Bluevine does not guarantee that applications will be processed and submitted before PPP funds are no longer available. Approval and loan forgiveness are subject to your availability to meet government-set eligibility requirements.
Certain financing may be made or arranged pursuant to California Financing Law-License No. 6054789.
All other product names, logos, brands, trademarks, and registered trademarks are property of their respective owners. All company, product, and service names used in this website are for identification purposes only. Use of these names, trademarks, and brands does not imply endorsement.
® 2023 Bluevine Inc. All Rights Reserved. “Bluevine” and the Bluevine logo are registered trademarks of Bluevine Inc.
Pros
Low minimum credit score
High loan maximums
Bank and borrow with the same company
Cons
12-month plan requires $80,000 monthly revenue
Limited term length options
Max interest rate not disclosed
WHAT TO KNOW
To qualify for its 6-month plan, you'll need at least $10,000 in monthly payments and a 625 credit score. Its 12-month plan requires a steep 700 FICO score and $80,000 in monthly payments.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
625
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
No
Minimum time in business requirement:1 year
Minimum business annual revenue:$120,000
OnDeck: Bankrate 2025 Award Winner Best lender for startups
Bankrate Score = 4.5/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$6k-$100K
Term: 12 - 24 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
OnDeck’s business lines of credit have an average interest rate of 55.90% and repayment terms of 24 months. Restricted industries include adult entertainment, art dealers, firearms vendors and mortgage and nonmortgage loan brokers. There’s an origination fee of up to 4%. You may also be required to make a minimum draw of $1,000 at origination.
Funding isn't available in North Dakota.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
625
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
No
Minimum time in business requirement:1 year
Minimum business annual revenue:$100,000
American Express Business Blueprint: Best for secured line of credit
Bankrate Score = 4.3/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$2k-$250K
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Pay a monthly fee each month you have an outstanding balance
Digital application and onboarding journey; applications are not accepted by phone
Customers can apply 24/7 and access their account information 24/7
Disclosures:
Total monthly fees incurred over the loan term range are: 3-9% for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans, and 12-18% for 24-month loans
The required FICO score may be higher based on your relationship with American Express
All businesses are unique and are subject to review and approval
**American Express® Business Line of Credit offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This article contains general information about the American Express® Business Line of Credit installment loan type only.**
Pros
Online application
Flexible access to funds
Multiple term options
Cons
High fees on longer terms
Personal guarantee required
Minimum draw amounts
WHAT TO KNOW
Business credit score: N/A
Personal credit score: Minimum FICO score of at least 660* at the time of application
Personal guarantee requirement: Yes
Minimum time in business requirement: Must have started your business at least a year ago
Minimum business monthly revenue: Average monthly revenue of at least $3,000
* All businesses are unique and are subject to approval and review.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
660 *
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.3/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$1k-$150K
Term: 3 - 6 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Fundbox is available in all 50 states and multiple territories. Its loans require a personal guarantee from business owners with at least a 25 percent stake. In addition to the weekly fees, Fundbox charges a $6 non-sufficient funds fee. Payments are made weekly.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
600
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Bankrate Score = 4.3/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
Starting at $1,000
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
The secured Business Advantage line of credit is available throughout the U.S. Minimum combined ownership 80%; application and personal guarantee need from owners with a stake of 25% or more. Upfront and renewal fees vary by line size.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
N/A
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
700
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
Yes
Minimum time in business requirement:6 months
Minimum business annual revenue:$50,000
Wells Fargo Business: Bankrate 2025 Award Winner Best small business lender for good-to-excellent credit
Bankrate Score = 4.2/5 Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Loan amount
$5k-$150K
Term: 3 - 24 months
Interest rate
Interest will typically be quoted as an annual percentage rate (APR), which reflects interest rate and any other charges and fees you may have to pay.
Wells Fargo has three business lines of credit. Two are unsecured: Wells Fargo BusinessLine® line of credit has loan amounts of $10,000 to $150,000 and requires at least 2 years in business. The Wells Fargo Small Business Advantage line of credit has limits of $5,000 to $50,000 and is available to businesses younger than two years. Personal guarantees required.
Business credit score:
There are four companies that assess business credit scores: Dunn & Bradstreet (D&B), Experian, Equifax and FICO. Each
calculates their own scores based on various scales. D&B and
Experian rank on a 1-100 scale. FICO scores on a 0-300 scale.
Equifax generates 3 separate scores based on business payment
index (1-100), business credit risk (101-992), and business
failure (1,000 - 1,880).
680
Personal credit score:
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator of the loans you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
680
Personal guarantee requirement?:
This is a form of protection for lenders requiring the borrower to repay the loan from their personal assets if the
business defaults. A personal guarantee can help some
businesses access credit that typically wouldn't qualify.
A closer look at Bankrate's top business lines of credit
The best business lines of credit offer a wide range of credit limits, lenient eligibility requirements, no draw fees and fast funding. Take a closer look at Bankrate’s best picks business lines of credit and the features they offer.
National Funding: Best for early payoff discount
Overview: While National Funding doesn’t offer lines of credit, they do lend up to $500,000 for business owners looking for quick funding, flexible repayment terms, and early payoff discounts. Borrowers will need a credit score of at least 660 and $250,000 in annual revenue, with at least six months in business. National Funding offers a variety of repayment options, with daily, weekly and monthly payment options available, and short repayment terms if you need them.
While the rates are on the higher side, once approved, you can access funding in less than a day, making it a good option if you’re looking for fast funding. You also get connected with a funding specialist who can help you find the best loan and terms for your needs.
National Funding is best for business owners with a fair credit score who can meet the $250k revenue requirement. If you have a solid repayment plan in place, you can also take advantage of the early repayment discount.
Quick funding
Variety of loan terms and repayment periods
Early payoff discount
Specialized loan matching
Quickbridge: Best for loan variety
Overview: While it doesn’t offer lines of credit directly, Quickbridge has fast funding for short-term loans that can cover a variety of expenses. QuickBridge offers flexible repayment terms from three to 18 months, and can lend you up to $500,000 if you meet the requirements.
Borrowers will need to have at least a 660 credit score with $250,000 in annual revenue, with a time in business of at least six months. QuickBridge’s rates tend to be a little higher than the market standard, but they make up for it with prepayment discounts that allow you to save money if you pay the loan off before the term ends.
QuickBridge is best for business owners who need quick funding with flexible terms. If you can meet the 660 credit score and $250,000 revenue requirements, you can take advantage of Quickbridge's variety of repayment options, ranging from three to 18 months, and with daily and weekly payment options available. Have a solid repayment plan in place so you can take advantage of early repayment discounts and save a bit of interest.
Loan terms from three to 18 months
Quick funding
Short terms
No collateral required
Fundible: Best for flexible lines of credit
Overview: Fundible is an online lender that offers business lines of credit up to $500,000 with up to 24-month terms. It has lenient approval requirements and may approve businesses traditionally not accepted by major banks. Unlike other lines of credit that have weekly or biweekly payments, Fundible offers monthly payments.
Fundible is best for flexible lines of credit because it’s accessible to a variety of business owners. It offers low credit lines starting at $1,000 up to $500,000, helping you make small- to medium-sized purchases. It also accepts personal credit scores as low as 500, one of the lowest requirements on the market. You will need $96,000 in annual revenue (or $8,000 in monthly revenue) to qualify.
Accepts a 500 FICO score
No prepayment penalty
Line stays open for the life of your business
Bluevine: Best for established businesses
Overview: Bluevine is an online business bank that offers business checking and loan products. For its line of credit, your application can be approved in as little as five minutes. You can then use its handy online dashboard to start drawing funds that same day or even instantly if you have a Bluevine checking account. Its credit lines go up to $250,000, similar to other online lenders, and offer flexible weekly or monthly repayments across six-month or 12-month terms.
Established in 2013
Low starting interest rates
Accepts a fair 625 personal credit score
No monthly fees
Same-day and instant funding available
American Express Business Blueprint™️: Best for secured line of credit
Overview: American Express Business Blueprint™, formerly Kabbage, is a service from American Express offering lines of credit. It offers accessible eligibility requirements to apply, accepting businesses with fair credit and as little as $3,000 in average monthly revenue. Its line of credit can cater to businesses needing small loan amounts from $2,000 to $250,000.
But instead of interest, it charges a monthly percentage of your loan balance, a fee structure that can quickly add up to more than you’d pay with other lines of credit. This line of credit offers flexible repayment terms of six, 12, 18 or 24 months.
The total monthly fee incurred over the loan term ranges from 3.00 percent to 9.00 percent on six-month terms, 6.00 percent to 18.00 percent on 12-month terms, 9.00 percent to 27.00 percent on 18-month terms and 12.00 percent to 18.00 percent for 24-month terms. Once approved, you’ll make a monthly payment instead of the usual daily or weekly payment schedule. And you won’t get tagged with a prepayment penalty if you pay back the loan early.
* All businesses are unique and are subject to approval and review.The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
America Express Business Blueprint™ works best if you need a secured business line of credit since you’ll need business assets to secure the loan. You will also need to sign a personal guarantee each time you make a draw, which guarantees that you’ll repay the loan with personal assets if needed.
Lenient revenue and credit criteria
Flexible repayment terms
Monthly payments
No prepayment penalty
Fundbox: Best for fast funding
Overview: Fundbox is an online business lender that has offered business lines of credit to over 500,000 businesses since it opened its doors. Through its unsecured line of credit, you can get funding up to $150,000, which is a lower limit than most competitors. Though Fundbox charges a weekly fee of 4.66 percent on a 12-week term or 8.99 percent for the 24-week term, you can bypass it by repaying your loan quickly without early prepayment penalties.
Fundbox is best for fast funding, boasting fast approvals as short as three minutes from the time you submit your application. You can then access funds through its website or app and receive funding as soon as the next business day. You will need a business bank account when opening the credit line to easily receive the funding.
Opened in 2013
Access funds through website or app
Next-day funding available
Accepts fair personal credit of 600 or higher
No prepayment penalty
Backd: Best for high loan limits
Overview: Backd is a fintech lender specializing in business lines of credit, working capital loans and a unique buy now, pay later loan option. You can receive funding in as little as 24 hours and track your withdrawals through its online dashboard. It also keeps most of its loan requirements relaxed, helping startups and borrowers with fair credit access funding. And unlike many business lenders, its loans don’t require you to secure them with assets.
Backd’s business line of credit is best if you need high credit limits, offering up to $750,000. This maximum limit is high compared to most lenders’ $250,000 credit limit. That said, you'll need a high annual revenue of $300,000, which is higher than most lenders. You can apply and get approved in less than 24 hours, and there are no limitations on how often you draw funds. Keep Backd's short repayment periods in mind, though. It offers weekly payments across six or 12 months and a fairly steep APR of 30 percent.
Founded in 2018
High credit limit
Funding within 24 hours
Accepts fair personal credit
OnDeck: Best for short-term lines of credit
Overview: OnDeck is an online lender offering both term loans and lines of credit. For its line of credit, the credit limit is $100,000. While this is a low credit limit compared to other lenders, its eligibility requirements are more relaxed, only requiring a personal credit score of 625, one year in business and annual revenue of $100,000.
Unlike most lines of credit, OnDeck’s small business line of credit also gives you the chance to get same-day or instant funding once you’re approved. However, starting APRs are high, and the average APR for a line of credit is 57.10 percent.
OnDeck is best for short-term lines of credit because it offers terms of 12, 18 or 24 months, considered short-term loans by business lending standards. These term options are more flexible than other business lines of credit that stop at 12 or 18 months. Plus, you won’t pay a draw fee when accessing your line of credit, and you can adjust your repayment terms to weekly or monthly.
Established in 2006
Same-day funding available
Early prepayment benefit
Lenient eligibility requirements
Bank of America: Best for low interest
Overview: Bank of America is a national bank with nearly 4,000 branches across the U.S., so you can get the personalized experience you may be needing. It offers both secured and unsecured lines of credit that you can renew each year. It also offers a cash-secured credit line with lower qualification requirements, such as accepting businesses with just six months in business and $50,000 in annual revenue, with $1,000 as the minimum deposit.
Bank of America's business lines of credit are best for their low starting interest rates compared to online lenders. Its lines of credit interest rates start at 8.50 percent for a secured and 9.00 percent for its unsecured line.
3 lines of credit
Large, national brand with branches
Low starting interest rates
Low annual revenue required
Monthly payments
Wells Fargo: Best for unsecured lines of credit
Overview: Wells Fargo is a well-established bank with about 5,600 branches across the U.S. where you can get face-to-face customer service. It has three business lines of credit products, including two unsecured lines, one of which is an SBA-backed line. Most lenders offer just one business line of credit option, and it’s rare to find a lender offering SBA-backed lines. Its unsecured lines of credit offer credit limits of $10,000 to $150,000, and the SBA-backed line offers limits from $5,000 to $50,000.
Wells Fargo is best for unsecured lines of credit because it offers two unsecured lines catering to different crowds. Wells Fargo BusinessLine® line of credit offers loan amounts up to $150,000 with low interest rates starting at 9.25 percent. It comes with a Mastercard that you can use to access the line of credit, a feature that you won’t find with most credit lines. You will pay an annual fee, though it’s waived for the first year.
For businesses under two years old, you can access its Small Business Advantage line of credit, an SBA-backed line. This revolving credit line offers credit limits up to $50,000 with interest rates at 12.00 percent. This type of line of credit is rare to find in the business loan marketplace and is ideal for startups. This credit line accepts businesses under two years old and doesn’t come with an annual fee or collateral requirements.
Founded in 1852
3 lines of credit
Low interest rates
Mastercard is tied to rewards program
Large, national bank with branches
BANKRATE EXPERT FAQ
What makes a business line of credit an attractive option for businesses that need capital?
"A business line of credit is an attractive financing option for companies that value flexibility, given uncertain and/or erratic liquidity needs. Unlike a traditional loan, which entails borrowing an interest-bearing sum upfront, a line of credit allows you to borrow only what you need, when you need it (up to a predetermined credit limit). This type of revolving credit facility enables financial agility, while minimizing interest expense."
How Bankrate chooses our best business line of credit lenders
Bankrate's trusted small business loan industry expertise
To choose the best business lines of credit, we ensured all loans featured are broadly available across the United States. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, whether the loans are secured or unsecured, minimum annual revenue and fees.
When evaluating lenders, we use a 22-point scale to measure quality in five key areas:
Access to small business funding is a challenge for many business owners. Rate hikes and bank turmoil have led to lenders tightening credit standards and eligibility requirements. This can make it difficult for startups, bad-credit borrowers and business owners in underserved areas to get approved for small business loans.
Our experts consider several factors in this category and award higher scores to lenders that offer flexible loan amounts, fast approval and funding and inclusive time in business and annual revenue requirements.
The affordability of a business loan often depends on a business owner's financial profile. A business with high revenue and a flexible budget will likely be able to afford most loan options. Businesses considered high risk, such as startups or those with bad credit, may struggle to find loans with affordable interest rates and reasonable fees.
We consider a business loan affordable if the payments are manageable, you have the lowest possible rate based on your creditworthiness and there are minimal fees. Lenders that have lower rates, offer rate or fee discounts and have minimal fees receive higher scores.
A good customer experience requires a lender to be transparent, efficient and responsive. Reputable lenders that value their customers are easy to communicate with, responsive to your questions and concerns and willing to go the extra mile to make sure you have a positive experience for the life of the loan.
Lenders offering online accounts and applications and a range of customer support availability score higher in this category.
While the Truth in Lending Act (TILA) protects consumers against unfair or harmful lending practices, it doesn’t apply to business loans. This can make it harder to get straightforward and upfront information on loan costs when comparison shopping. We score lenders that make it easy to find rates and fees, as well as eligibility and credit score requirements, higher than those who do not disclose information.
Loan flexibility is finding a loan to meet your needs, even if you don’t have high annual revenue, several years in business or the best credit score. Loan flexibility can look like lenders that offer multiple lending products, variety in loan terms or unique options to give business owners the opportunity to fund their businesses in a way that works for them.
Lenders scoring high in this category offer varied products and services to cater to all types of borrowers and businesses.
How to get a business line of credit through Bankrate
If you’re ready to take the plunge and apply for a business line of credit, Bankrate makes it easy for you. Here’s our in-depth guide to finding the right line of credit, getting your application in order, boosting your odds of approval and comparing lenders for the best deal possible.
Determine if a line of credit is right for your business
A line of credit can be a useful lending product if you use it in the right circumstances.
A business line of credit works well if:
You have flexible spending needs, as you can draw only as much as you need from the credit limit.
You can manage a short and aggressive repayment period.
You need funding on a continual basis or who aren’t sure of how much you’ll need to borrow.
Your credit history doesn’t qualify you for a traditional loan.
The key difference between a business loan and a business line of credit is flexibility in funding. While a business loan offers financing in a predetermined lump sum, a business line of credit allows you to withdraw as much or as little funds you need within the credit limits over the draw period.
With a business loan, you receive a certain amount of money agreed upon by you and the lender in a lump sum, which you have to immediately make payments on and that will immediately accumulate interest whether or not you end up using all the capital. Business loans generally require a higher minimum credit score, time in business and revenue amount, while offering loan amounts ranging from $5,000 to millions of dollars, depending on the lender.
A business line of credit, on the other hand, allows you to withdraw only as much as you need within the draw period and credit limit. If you take out a line of credit up to $10,000, for example, and draw only $2,000, you only need to pay the balance and interest on the $2,000. This makes a line of credit better for businesses with flexible funding needs in smaller amounts. Lenders generally also allow you to make interest-only payments during the draw period, giving you more flexibility with the payments.
As a quick reference, here are the core differences between a business loan and line of credit.
Business loan
Business line of credit
Lump sum payment
Continuous funds that can be withdrawn
Predetermined loan amount
Flexible balance depending on how much has been drawn
Lower interest rates
Higher interest rates
Higher credit requirements
Lower credit requirements
Longer repayment terms
Short, more aggressive repayment terms
New loan required for additional funds
Additional funds can be drawn from existing line of credit
Flexible funding: You only have to pay interest on as much as you borrow, allowing you to draw exactly as much as you need instead of trying to guess your expenses ahead of time.
Adjustable repayments: Line of credit repayments are based on how much you borrow, allowing you to only borrow as much as you’re comfortable repaying.
Lower credit and revenue requirements: A line of credit can be a flexible gateway into borrowing if you need to build your credit history or have lower business revenue.
More funding available than credit cards: Business line of credit limits can go as high as $500,000, higher than what most credit card balances allow.
Lower interest than credit cards: Line of credit APRs tend to be less than card APRs.
Cons
Fees: You may pay a monthly maintenance fee as well as annual renewal fees and draw fees each time you withdraw funds. These fees can add up, leading to a high overall cost for borrowing.
Higher interest rates: Business lines of credit tend to have higher interest rates than term loans. Interest rates may also be variable, which means that the rate may rise over time based on market fluctuations.
Short repayment terms: You may have a short repayment term, such as 12 or 18 months. Its short repayment term may have a higher payment and a more aggressive repayment schedule, such as daily or weekly payments, than long-term loans.
Lower loan limits: The credit on a line of credit tends to be much lower than what you can get with a traditional loan, making it a less viable option for big business expenses.
Fewer perks than credit cards: Lines of credit don’t often offer cash back or points like a business credit card would.
Calculate how much debt your business can handle
How much debt you take on can quickly determine whether your business succeeds or fails, which is why it’s a good idea to budget out your debt balance and monthly payments ahead of time.
As a rule of thumb, you should aim for no more than a 36 percent debt to revenue ratio. This means that if your business makes $100,000 annually, you should aim for no more than a $36,000 credit and interest balance for the year. On a monthly basis, this means your monthly payment should be no more than $3,000 with interest and fees.
Since your line of credit balance can change, it’s always a good idea to calculate your monthly payment ahead of time, and ensure you either have the revenue or the cash reserves to cover your line of credit payment.
Find the right lender for a business line of credit
Selecting the right lender for your business line of credit can set you up for success long-term, especially if you want to borrow from them in the future and establish a long-term relationship.
When considering a lender, you’ll want to think about the following factors:
Line of credit rates and fees. Some lenders will offer lower interest rates or limited fees.
Line of credit terms. How much you can borrow, whether the line of credit is revolving and your draw limit will vary depending on the lender.
Product offerings. Lenders can have a wide variety of loan products, such as traditional loans, business credit cards or real estate loans.
Requirements. Different lenders can have stricter or more relaxed borrowing requirements.
Speed of approval. Some lenders will offer approval in less than 24 hours.
Customer service. Some lenders can offer features such as personalized loan matching, 24/7 customer service or access to a mobile app.
While lenders will differ in their offerings and approaches, different types of lenders can offer different pros and cons.
Lender type
Pros
Cons
Banks
Variety of lending products
More personalized service
Opportunity to build a relationship with the lender
Higher interest rates
Business hours can be limited
Slower approval times
Credit unions
Lower interest rates and fees
More personalized service
Locally-focused service
Business hours and locations can be limited
Products may be limited
Slower approval times
Online lenders
Fast approval
24/7 availability and service
Lower interest rates and fees
Lacks opportunity for building a relationship
May be unavailable in certain states
Lending products may be limited
Small Business Administration (SBA) approved lenders
Limited interest rates
Variety of loan and line of credit options
Lower credit requirements
Can be difficult to qualify for
Long approval times
Stricter business qualifications
Community lenders
Fixed interest rates and fees
Non-profit focused
Offers opportunities for underserved communities
Limited funds
Competitive to apply for
Unique requirements
Bankrate can help you find the right lender by allowing you to compare rates, fees, limits and requirements all in one place. Use our loan calculator to get started and get matched with the best lender for your needs.
Make sure you meet requirements
Ensuring you can qualify for a business line of credit can help you save time and a possible hard check on your credit score when you apply.
One way you can check your odds is through preapproval or prequalification, which allows you to check if you’re qualified through a soft credit check. This allows you to quickly compare loan offers, shop around and get an idea of how much financing you qualify for.
While not all lines of credit will have the same requirements, as a rule of thumb, you’ll want to have:
A personal credit score of 600 or better.
At least six months in business.
Minimum annual business revenue of $50,000.
Keep in mind that these requirements aren’t necessarily set in stone. Lenders will vary in their underwriting standards, and certain factors may give you some flexibility. If you have a high amount of business revenue, then you may be able to qualify even with a lower credit score.
Securing the line of credit with collateral may qualify you for a line of credit even if you don’t have the business revenue yet. Talk to your lender and see how you can meet the requirements, or otherwise make your application less risky.
When you apply for a line of credit, be sure to have your documentation on hand in order to help keep the approval process speedy.
Documents needed for a line of credit
Getting a small business line of credit will require you to show a solid financial outlook, though the exact documents you need will depend on the lender. At the least, you’ll need:
How to boost your line of credit chances of approval
While every lender approaches the approval process differently, there are a few things you can do to increase your odds of getting a loan.
Check your credit report
If you have any reports or missed payments made in error, you can dispute it with the credit bureau and help increase your credit score.
Write a detailed business plan
Highlighting your revenue projections, your knowledge of the market and your experience in the industry can show the lender how you plan on making your business successful.
Consider a secured line of credit
If you back your line of credit with collateral, lenders will feel the loan is less risky.
Start with a credit-builder loan
If your credit score is on the low side, or if you don’t have much history, you can take out a small, secured loan designed to help you build up a positive payment history.
Ask your lender for feedback
Many lenders are willing to work with you to improve your chances of approval. If you get rejected, ask what you can work on for the next time.
Prequalify through Bankrate
When shopping for loans, consider prequalifying with us. Bankrate offers multiple benefits if you decide to prequalify on our site, including:
Instant prequalification based on your credit profile
Compare multiple lenders at once instead of one lender at a time
No hard checks
Get expert insights based on unbiased reviews and analyses
Access loan information and applications in one place
Build a profile you can access later in the process
How to compare business lines of credit
Which business line of credit that works best for your business will depend on your business model and priorities. While no two businesses are the same, there are a few key factors you should consider when selecting a line of credit.
If your most important deciding factor is…
…then you should consider
Cost
Lower interest rate LOCs, which can come with having a good credit score or a secured LOC
LOCs with autopay and early repayment discounts
Flexibility
A revolving line of credit, which allows you to pay off your balance during the draw period
Lines of credit with adjustable draw limits and payoff periods
High limits
A secured line of credit, which can come with higher limits based on the collateral
Customer service
A lender with a dedicated service line or 24/7 availability, which is often offered by online lenders
Banks and credit unions, which often offer personalized recommendations
Ease of approval
Bad credit lines of credit, which offer LOCs for those with bad or no credit history
Secured lines of credit, which back your balance with collateral in exchange for easier approval
Mangeable repayment terms
Long-term lines of credit with lower monthly payments
Low-interest LOCs, which have lower borrowing costs
Lines of credit with adjustable draw limits and payoff periods
You can use Bankrate’s preapproval tool to compare lines of credit one on one, and help determine which lending product works best for you and your business.
Secured vs. unsecured business lines of credit
The difference between a secured business line of credit and an unsecured line of credit is whether you back the loan with cash or collateral.
A secured business line of credit requires that you back your loan with some sort of collateral, such as business equipment, real estate or personal property such as your house. Secured lines of credit will often require this in the form of a personal guarantee. If you default on your line of credit balance, the lender will be able to seize the collateral and liquidate it in order to pay back the loan.
Many lenders offer cash secured business lines of credit, where you put down a cash deposit in order to secure a line of credit. If the balance is paid off, you’ll receive the deposit back.
If you have a lower credit score, are a new business or don’t meet the revenue requirements for a traditional loan or line of credit, secured business lines of credit can offer you a way to get flexible funding and improve your credit score as you pay down the balance.
As a quick reference, when looking at a secured or an unsecured line of credit:
Secured business line of credit
Unsecured business line of credit
Requires collateral such as property, equipment or cash
Does not require collateral
Lender can seize any collateral you secure the line of credit with
May require a personal guarantee that puts your personal assets at risk for seizure
Have more flexible revenue, time in business and credit requirements
Have stricter revenue, time in business and credit requirements
Tend to have lower interest rates
Tend to have higher interest rates
Tend to have higher credit limits, depending on value of collateral
Tend to have lower credit limits, depending on revenue and creditworthiness
Frequently asked questions about business lines of credit
The interest rates on business lines of credit can fluctuate significantly depending on market conditions and the lender you choose. The interest rate for a business credit line typically starts around 8 percent but could go as high as 60 percent or more. This variability only reinforces the need to shop and compare lenders for the lowest interest rate on your business line of credit.
Depending on the lender, you might get approved as fast as within one to two business days. Online lenders tend to be faster than traditional lenders when approving lines of credit for businesses. Traditional lenders may take weeks to complete the underwriting process. Having all of your paperwork in order and submitted can dramatically speed up the process.
The total cost of a business line of credit consists of the amount you borrow, the interest and any fees charged for the credit line. Some examples of fees you may see with a business line of credit are draw fees every time you withdraw funds, an annual maintenance fee to renew the line of credit or a monthly service fee to keep the line open. In some cases, you’ll pay an origination fee to open the line of credit. Before opening a business line of credit, you'll want to compare total costs for a few different options to determine which is best for your business.
You can use a small business line of credit for nearly any purchase as long as it stays within the credit limit. But because the credit limit refreshes as you pay back the loan, you may want to keep it free to use for unexpected expenses or cash flow gaps. For this reason, many business owners use business credit lines to cover small expenses that they can pay back easily.
Your credit limit with a business line of credit will depend on your business’s creditworthiness and any maximum limits set by the lender. Many lenders offer lines of credit within the range of $5,000 to $500,000. Some banks provide higher credit limits for businesses with the revenue to support borrowing higher amounts.
Your credit limit with a business line of credit will depend on your business’s creditworthiness and any maximum limits set by the lender. Many lenders offer lines of credit within the range of $5,000 to $500,000. Some banks provide higher credit limits for businesses with the revenue to support borrowing higher amounts.
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