$250,000
Not disclosed
Up to 60 months
None
Businesses seeking long-term, revolving funding may want to consider a secured line of credit from Truist, which can provide up to $250,000 with terms lasting as long as 60 months. This is a particularly long repayment period, giving you plenty of time to borrow funds as needed to grow your business. The best part is you’ll only pay interest on what you borrow.
With no minimum time in business or annual revenue requirements, Truist may be a great option for startups. However, lines of credit over $100,000 will require collateral to secure.
In order to qualify, you’ll need to meet Truist’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$150,000
4.66% to 8.99% 4.66% for 12-week terms8.99% for 24-week terms
12 or 24 weeks
3 months
With starting rates that are lower than most competitors, a line of credit from Fundbox might be a good option if you need to keep interest costs low. Rates start at 4.66% for 12-week terms and 8.99% for 24-week terms. This short-term financing can provide up to $150,000 to be used for startup costs including purchasing equipment, hiring staff and covering gaps in your cash flow. And as a bonus, Fundbox may give you access to funds as soon as the next day.
With relatively low time in business and annual revenue requirements, businesses may be able to qualify after only 3 months in operation. However, it’s important to note that weekly payments will be required.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
From $1,000
Not disclosed
Revolving with annual review
6 months
If your business is new and you need help building your business credit, consider Bank of America.
As a secured financial product, Bank of America’s Cash Secured Line of Credit is different from other business lines of credit. A security deposit of $1,000 or more will be required to open the account. Much like with a secured business credit card, the amount you deposit will determine the amount you have to spend. As you make payments, Bank of America will report back to the major credit bureaus, building credit for your business.
After 12 months of consistent payments, borrowers may be eligible to have their deposit refunded and upgrade to an unsecured line. However, because the funding you can access for the first year will be limited to what you can afford to put down, this option is less flexible than some of the others on this list.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$15,000 to $2,000,000
Not disclosed
Up to 60 months
6 months
If you have less-than-stellar credit, finding financing for your new business can be a challenge. But with Taycor Financial, borrowers with scores as low as 575 may be able to qualify for a line of credit up to $2,000,000, making it easier for low-credit borrowers to qualify for financing. And with an impressively high borrowing amount, business owners can rest easy knowing their business is covered if any unexpected expenses pop up.
However, a business line of credit from Taycor Financial will require a personal guarantee, which can put your personal financial standing at risk if your business fails to make payments. For this reason, it’s important to make sure you can afford your monthly payments before withdrawing any funds.
In order to qualify, you’ll need to meet Taycor Financial’s criteria of:
Up to $10,000,000
9.50% Based on the current prime rate of 7.50% + and added 2.50% from Fundible
24 to 120 months
6 months
Lines of credit backed by the U.S. Small Business Administration (SBA) have several benefits, including high borrowing amounts, lengthy repayment terms and capped interest rates. But getting a government-backed loan can be tricky for new businesses, as SBA lenders typically require a good credit score and a minimum of two years in business to qualify.
With Fundible, it may be easier to secure an SBA line of credit, with the lender offering financing to companies after only six months in business. However, this may not be the best option for borrowers with urgent needs, as it may take several months to receive your funds.
Learn more about Fundible.
In order to qualify, you’ll need to meet Fundible’s criteria of:
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
$6,000 to $100,000
40.00% APR Minimum APR offered to at least 5% of customers (not the lowest rate offered)
12 to 24 months
12 months
OnDeck’s ability to provide same-day funding sets it apart from the competition, allowing borrowers to receive their funds without delay. Though the lender’s borrowing requirements aren’t quite as lenient as some of the others on this list, businesses that have been in operation for at least one year may be able to qualify.
However, qualifying borrowers will pay a price for their fast funds, as OnDeck’s interest rates are fairly high.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
$2,000 to $250,000
3.00% to 27.00%
3% to 9% for 6-month terms
6% to 18% for 12-month terms
9% to 27% for 18-month terms
12% to 18% for 24-month terms
6 to 24 months
12 months
If you’re looking for short-term financing, look no further than American Express’ business line of credit, which can provide up to $250,000 with repayment terms lasting 6, 12, 18 or 24 months. Unlike other short-term loan options, this line of credit does not require weekly payments. This means a 6-month term from American Express might be a better option for borrowers with short-term needs.
With no application, origination or prepayment fees, American Express keeps the upfront costs of borrowing low and you won’t be penalized if you choose to pay off your loan early. Still, with a minimum credit score of 660, this line of credit may only be an option for those with good credit scores. In addition, American Express requires a personal guarantee, which means you’ll be expected to repay the loan if your business is unable to foot the bill.
In order to qualify, you’ll need to meet American Express’ criteria of:
A business line of credit is a flexible form of small business funding. Unlike a term loan, which disburses the money in one lump-sum payment, a business line of credit typically works more like a credit card.
Because they provide revolving funds, business lines of credit offer greater flexibility than business loans, allowing you to borrow funds as needed up to a certain limit. You’ll only pay interest on the amount that you’ve borrowed, and you can borrow against your limit again once you’ve paid down your balance.
Most financial institutions require you to be in business for at least two years before extending you a line of credit. However, our picks for the best business line of credit for new businesses have shorter time in business requirements.
Here’s a closer look at how to get a business line of credit:
Determining why you need the loan and how much you’d like to borrow will be essential in helping you find the right lender.
If you’re not sure how much working capital you need, our business loan calculator can help you get an estimate.
Checking your credit score can go a long way toward helping you figure out where to apply for a loan. If your score needs some work, consider working to build your credit score before applying or looking for lenders who can accommodate lower scores.
Traditionally, online lenders offer more flexible qualifying requirements than brick-and-mortar financial institutions. However, in exchange you may end up with less flexible terms or a higher interest rate.
Similarly, secured lines of credit may also be easier to qualify for, but you’ll have to use an asset, such as inventory or a cash deposit, to back the loan.
Once you know what’s within your reach, the next step is to research lenders who may be a good match for your needs. Consider how much you can get with each lender and how long you’ll be given to repay your debt.
If you’re a new business, you’ll need to make sure you meet the lender’s minimum requirements to qualify for a line of credit. It may help to read some business lender reviews before moving forward with your application.
Each lender’s required documents will vary. But in general, you can expect to provide a business plan, current financial statements and business tax returns. In some cases, you may also need to connect to a business checking account.
Many applications can be completed online, but in some instances, you may need to visit a physical branch location to apply for a business line of credit.
Decision time and funding timelines can also vary, but the lender will likely make these details clear so that you have a better idea of what to expect.
| Pros | Cons |
|---|---|
Can withdraw money as needed Only pay interest on the amount you borrow Typically has lower interest rates and higher borrowing limits than a credit card | Not the best pick for financing large purchases or ongoing business expenses May need to secure your financing with collateral Additional fees can increase the total cost of borrowing |
It is possible to get a business line of credit as a new business. Though most traditional lenders require a minimum of two years in business to qualify for financing, the lenders on this list may be willing to work with companies that have been in operation for a year or less.
Most banks require you to have at least a two-year business history before applying for a line of credit. However, some banks have more lenient qualifying requirements. For example, Fundbox only requires you to have three months in business.
The process for getting a business credit card as a startup often involves registering your business, obtaining an EIN number and applying for a card that suits your needs.
