Best Business Lines of Credit of September 2024

A business line of credit gives you access to a set amount of capital that you can draw from as needed. You only pay interest on the funds you draw.

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Writer | Small business, business banking, business loans

Randa Kriss is a small-business writer who joined NerdWallet in 2020. She previously worked as a writer at Fundera, covering a wide variety of small-business topics including banking and loan products. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona College.

Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.

A business line of credit is a type of small-business loan that can be used for a variety of short-term needs, such as managing cash flow, buying inventory or covering payroll.

Compare our picks for the best business lines of credit and learn how to choose the right option for your needs.

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Here are 8 of the best business lines of credit

Wells Fargo BusinessLine® Line of Credit

Best for Bank lines of credit

SBA CAPLines of credit

with Fundera by NerdWallet

Best for SBA lines of credit

with Fundera by NerdWallet

Bluevine - Line of credit

with Fundera by NerdWallet

Best for Fast funding

with Fundera by NerdWallet

Headway Capital - Line of credit

with Fundera by NerdWallet

Best for Startups

with Fundera by NerdWallet

Fundbox - Line of credit

Best for Bad credit

OnDeck - Line of credit

with Fundera by NerdWallet

Best for Unsecured lines of credit

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Bank of America Cash Secured Line of credit

Best for Secured lines of credit

American Express® Business Line of Credit

Best for Flexible repayment terms

Here are 8 of the best business lines of credit

Best for Bank lines of credit

Min. Credit Score

Best for SBA lines of credit

Min. Credit Score

Best for Fast funding

Min. Credit Score

Best for Startups

Min. Credit Score

Best for Bad credit

Min. Credit Score

Best for Unsecured lines of credit

Min. Credit Score

Best for Secured lines of credit

Min. Credit Score

Best for Flexible repayment terms

Min. Credit Score

I'M INTERESTED IN:

Bank lines of credit

Wells Fargo offers business lines of credit with interest rates starting at 10.25%. This credit line is well suited for established companies with good credit.

Wells Fargo BusinessLine® Line of Credit

• Bank line of credit with competitive interest rates.
• Revolving credit line with no scheduled annual review.
• No collateral required; no prepayment penalties.

• Must be an established business with strong credit to qualify.
• May take longer to fund than online lenders.
• Annual fee and inactivity fees may apply.

This Wells Fargo line of credit offers competitive rates for businesses with at least two years in operation.

• Minimum credit score: 680.
• Minimum time in business: Two years.

Wells Fargo BusinessLine® Line of Credit

Wells Fargo offers business lines of credit with interest rates starting at 10.25%. This credit line is well suited for established companies with good credit.

This Wells Fargo line of credit offers competitive rates for businesses with at least two years in operation.

• Bank line of credit with competitive interest rates.
• Revolving credit line with no scheduled annual review.
• No collateral required; no prepayment penalties.

• Must be an established business with strong credit to qualify.
• May take longer to fund than online lenders.
• Annual fee and inactivity fees may apply.

• Minimum credit score: 680.
• Minimum time in business: Two years.

SBA lines of credit

The SBA CAPLines program offers four credit line options that offer funding up to $5 million. These lines of credit can be used for working capital, seasonal expenses, construction costs and contract expenses.

SBA CAPLines of credit

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• Line of credit options for seasonal, working capital, building and contracting needs.
• Large maximum borrowing amounts.
• Competitive interest rates and repayment terms.

• Typically requires good credit and multiple years in business.
• Slow to fund.
• Collateral and/or down payment may be required.

The SBA CAPLines program offers four lines of credit that can help businesses meet short-term and cyclical working capital needs. These credit lines have competitive interest rates and repayment terms.

• For-profit U.S. business.
• Unable to access credit on reasonable terms from nongovernment sources.
• Financial qualifications determined by individual lender.

SBA CAPLines of credit

The SBA CAPLines program offers four credit line options that offer funding up to $5 million. These lines of credit can be used for working capital, seasonal expenses, construction costs and contract expenses.

The SBA CAPLines program offers four lines of credit that can help businesses meet short-term and cyclical working capital needs. These credit lines have competitive interest rates and repayment terms.

• Line of credit options for seasonal, working capital, building and contracting needs.
• Large maximum borrowing amounts.
• Competitive interest rates and repayment terms.

• Typically requires good credit and multiple years in business.
• Slow to fund.
• Collateral and/or down payment may be required.

• For-profit U.S. business.
• Unable to access credit on reasonable terms from nongovernment sources.
• Financial qualifications determined by individual lender.

Bluevine offers a streamlined application process that can be completed in minutes. You may be able to access funding in as little as 24 hours.

Bluevine - Line of credit

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• Cash can be available within 12 to 24 hours.
• Can be used to build business credit.
• Low minimum credit score requirement.

• Requires weekly payments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

• Minimum credit score: 625.
• Minimum time in business: 12 months.
• Minimum annual revenue: $120,000.
• No bankruptcies in the past year.

Bluevine - Line of credit

Bluevine offers a streamlined application process that can be completed in minutes. You may be able to access funding in as little as 24 hours.

• Cash can be available within 12 to 24 hours.
• Can be used to build business credit.
• Low minimum credit score requirement.

• Requires weekly payments.
• Requires personal guarantee.
• Not available in North Dakota, South Dakota or Nevada.
• Rates can be high compared to traditional lenders.

• Minimum credit score: 625.
• Minimum time in business: 12 months.
• Minimum annual revenue: $120,000.
• No bankruptcies in the past year.

Headway Capital only requires that you have a minimum of six months in business to qualify for its line of credit.

Headway Capital - Line of credit

with Fundera by NerdWallet

• Flexible qualification requirements.
• No prepayment penalties.
• Funds available by next business day after approval.

• Most borrowers are subject to a 2% draw fee.
• Not available in all U.S. states.

Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

• Minimum credit score: 625.
• Minimum time in business: Six months.
• Minimum annual revenue: $50,000.

Headway Capital - Line of credit

Headway Capital only requires that you have a minimum of six months in business to qualify for its line of credit.

Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

• Flexible qualification requirements.
• No prepayment penalties.
• Funds available by next business day after approval.

• Most borrowers are subject to a 2% draw fee.
• Not available in all U.S. states.

• Minimum credit score: 625.
• Minimum time in business: Six months.
• Minimum annual revenue: $50,000.

You may be able to qualify for a line of credit from Fundbox with a personal credit score of 600 or higher.

Fundbox - Line of credit

• Financing available within one business day after approval.
• Simple application with minimal documentation required.
• Startup-friendly — accepts borrowers with a minimum of six months in business.
• Low minimum credit score requirement.
• No prepayment penalties, account maintenance fees or inactivity fees.

• Rates are high compared with traditional banks.
• May require personal guarantee.
• Weekly repayments required over a short term (maximum of 24 weeks).

Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

Fundbox - Line of credit

You may be able to qualify for a line of credit from Fundbox with a personal credit score of 600 or higher.

Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.

• Financing available within one business day after approval.
• Simple application with minimal documentation required.
• Startup-friendly — accepts borrowers with a minimum of six months in business.
• Low minimum credit score requirement.
• No prepayment penalties, account maintenance fees or inactivity fees.

• Rates are high compared with traditional banks.
• May require personal guarantee.
• Weekly repayments required over a short term (maximum of 24 weeks).

• Minimum credit score: 600.
• Minimum time in business: Six months.
• Minimum annual revenue: $100,000.

Unsecured lines of credit

OnDeck offers business lines of credit of up to $100,000. You don’t need to put up physical collateral to qualify.

OnDeck - Line of credit

with Fundera by NerdWallet

• Fast access to working capital.
• Accepts borrowers with a minimum credit score of 625.
• Streamlined application process with minimal documentation required.
• Can be used to build business credit.

• Not available in North Dakota.
• May require frequent weekly payments.
• Interest rates can be high compared with traditional lenders.
• Requires personal guarantee.

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.

• Minimum credit score: 625.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.
• No bankruptcies in the past two years.

OnDeck - Line of credit

OnDeck offers business lines of credit of up to $100,000. You don’t need to put up physical collateral to qualify.

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.

• Fast access to working capital.
• Accepts borrowers with a minimum credit score of 625.
• Streamlined application process with minimal documentation required.
• Can be used to build business credit.

• Not available in North Dakota.
• May require frequent weekly payments.
• Interest rates can be high compared with traditional lenders.
• Requires personal guarantee.

• Minimum credit score: 625.
• Minimum time in business: One year.
• Minimum annual revenue: $100,000.
• No bankruptcies in the past two years.

Secured lines of credit

Companies with at least six months in operation can use Bank of America’s cash secured line of credit to build business credit.

Bank of America Cash Secured Line of credit

• Available to borrowers with at least six months in business.
• No origination fee.
• Responsible spending can help you graduate to an unsecured credit line.

• Credit limit is based on the security deposit you provide.
• Must have a Bank of America checking or savings account to apply.

Bank of America’s Cash Secured line of credit can help startups cover working capital needs and establish business credit.

• Minimum time in business: Six months.
• Minimum annual revenue: $50,000 per year.
• Bank of America checking or savings account required.
• Minimum deposit of $1,000.

Bank of America Cash Secured Line of credit

Companies with at least six months in operation can use Bank of America’s cash secured line of credit to build business credit.

Bank of America’s Cash Secured line of credit can help startups cover working capital needs and establish business credit.

• Available to borrowers with at least six months in business.
• No origination fee.
• Responsible spending can help you graduate to an unsecured credit line.

• Credit limit is based on the security deposit you provide.
• Must have a Bank of America checking or savings account to apply.

• Minimum time in business: Six months.
• Minimum annual revenue: $50,000 per year.
• Bank of America checking or savings account required.
• Minimum deposit of $1,000.

Flexible repayment terms

American Express offers lines of credit with six, 12- 18-, or 24-month term options. Repayments are made on a monthly basis.

American Express® Business Line of Credit

• Streamlined application process with minimal paperwork.
• Financing from $2,000 to $250,000 available.
• Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
• Monthly repayment schedule (as opposed to daily or weekly).
• No prepayment penalties, account maintenance fees or draw fees.

• Must have online checking or PayPal account to verify cash flow.
• Personal guarantee required.
• Complex monthly fee structure makes it difficult to compare costs to other lenders.

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

• Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
• Must have started your business at least a year ago.
• Average monthly revenue of at least $3,000.
• All businesses are unique and are subject to approval and review.

American Express® Business Line of Credit

3% to 9% (6 months)

6% to 18% (12 months)

9% to 27% (18 months)

12% to 18% (24 months)

American Express offers lines of credit with six, 12- 18-, or 24-month term options. Repayments are made on a monthly basis.

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

• Streamlined application process with minimal paperwork.
• Financing from $2,000 to $250,000 available.
• Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
• Monthly repayment schedule (as opposed to daily or weekly).
• No prepayment penalties, account maintenance fees or draw fees.

• Must have online checking or PayPal account to verify cash flow.
• Personal guarantee required.
• Complex monthly fee structure makes it difficult to compare costs to other lenders.

• Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
• Must have started your business at least a year ago.
• Average monthly revenue of at least $3,000.
• All businesses are unique and are subject to approval and review.

How Much Do You Need?

What is a business line of credit?

A business line of credit allows you to borrow up to a certain limit and only pay interest on the money you borrow — similar to the way a credit card works. You then repay the funds over time, typically on a weekly or monthly schedule.

As you repay what you’ve borrowed, you can continue to draw on the line — provided your payments are on time and you don’t exceed your credit limit.

Types of business lines of credit

Secured business line of credit

A secured business line of credit requires you to put up assets such as inventory or property as collateral. If you fail to pay back the credit line, your lender could seize your assets.

Because secured lines of credit help mitigate risk for the lender, these products often have more competitive rates and terms than unsecured options.

Unsecured business line of credit

An unsecured business line of credit doesn’t require physical collateral, but some lenders may still require a personal guarantee or a lien on your business’s assets.

A personal guarantee gives a lender the right to go after your personal assets, like your house, if you default on a loan. A UCC lien is similar; a lender can seize your business assets if you haven’t repaid a loan.

Minimum requirements for a business line of credit

Credit score: 600 to 700 Some online lenders will accept credit scores as low as 600, but traditional lenders will likely require strong credit. A higher credit score can help you qualify for the best rates and terms.

Time in business: 6 months to 2 years Most traditional lenders will want to see at least two years in business. Online lenders are more likely to work with startups, provided they have a minimum of six months in operation.

Annual revenue: $36,000 to $250,000 Businesses with lower revenue may still qualify for a line of credit. To get bank or SBA funding, however, you'll likely need annual revenue upwards of $100,000.

Where to get a business line of credit

Banks and credit unions

Banks and credit unions typically offer the most competitive rates and terms on a business line of credit. To qualify, however, you’ll usually need to meet strict eligibility requirements, such as strong revenue, good credit and several years in business.

Compared to online lenders, banks and credit unions can also be more likely to require physical collateral to secure your credit line (especially for larger limits), as well as more likely to charge additional fees, such as annual or inactivity fees.

SBA lenders

Some banks and credit unions also offer SBA CAPLines of credit. These SBA lines of credit are part of the 7(a) program, offering funding up to $5 million. There are four different credit line options based on your industry and financing needs.

Although you’ll still need to meet strong qualifications to get an SBA line of credit, these products may be slightly easier to access than traditional bank credit lines. Like business bank loans, however, these SBA lines of credit require a detailed application process and will likely be slow to fund.

Online lenders

Online lenders are a good option for startup business lines of credit or bad credit borrowers as they generally have more flexible business line of credit requirements compared with banks and credit unions.

Online lenders typically have streamlined application processes and fewer fees, and may be able to issue small-business lines of credit in a matter of days. However, these lenders are also likely to charge higher interest rates than banks and may have lower credit limits.

Pros and cons of business lines of credit

Good option for working capital, short-term expenses and emergency funding needs.

Only pay interest on funds you draw, not the total credit limit.

May be easier to qualify for than traditional term loans.

Can be used to build business credit.

Not suitable for large purchases or investments.

May include a variety of fees that can add to overall cost.

Often have shorter repayment terms and lower funding amounts than traditional term loans.

How to compare business lines of credit

When trying to choose the best business line of credit for your needs, you’ll want to compare factors such as:

Maximum funding amount. If you think you need a large credit limit, bank or SBA lenders may be a better option. Keep in mind that many banks also offer commercial lines of credit, which are designed to meet the needs of mid-size, high-revenue businesses.

Repayment schedule. Business lines of credit may require daily, weekly or monthly repayment. Consider your budget and cash flow to determine the type of repayment you can afford.

Interest rates. Current business line of credit rates can range from 10% to 99% APR. In general, the stronger your credentials, the lower interest rates you’ll receive. Banks tend to offer more competitive business line of credit rates compared with online lenders. As you compare interest rates, consider whether a lender offers fixed or variable rates. A business line of credit calculator can help you estimate potential total costs.

Additional fees. Origination, draw and account maintenance fees can increase the overall cost of your business line of credit. You should make sure you understand any additional fees a lender charges and ask questions if the fees are unclear. You’ll also want to determine if the lender charges prepayment penalties for repaying early.

Funding speed. If you need business capital quickly, you may be able to get it from an online lender in just a few days. Although traditional lenders may take anywhere from days to weeks to provide funding, you’ll likely get a lower interest rate with these options.

Lender reputation. Reading online reviews or talking to other business owners can help you get a sense of what it may be like to work with a particular lender. Although there are many reputable online lenders, be wary of any company that offers “guaranteed approval” or makes similar promises that seem too good to be true.

Methodology

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

Meet the editorial team

Lead Writer | Small business

Randa Kriss is a lead writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured in The Washington Post, The Associated Press, MarketWatch and Nasdaq, among other publications. She has also hosted a webinar as part of the SBA's 2024 National Small Business Week Virtual Summit. Randa is passionate about helping small-business owners make educated financial decisions, especially when it comes to affordable funding. She is based in Chicago.

Assigning Editor | Small business

Sally Lauckner is an editor on NerdWallet's small-business team. She has over 15 years of experience in print and online journalism. Before joining NerdWallet in 2020, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content and specializing in business financing. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She is based in New York City.