Best Business Lines of Credit in November 2024

Compare lenders to find flexible funds for short-term needs

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A business line of credit is a flexible form of small business financing that works similarly to a credit card. You can borrow against it up to a preset limit and only pay interest on the amount that you’ve borrowed. Once you pay down your balance, you can borrow against it again.

Jump ahead for more information on lines of credit and how they work or keep reading to check out our top picks for the best business line of credit lenders in 2024. We reviewed more than 24 lenders based on their rates and terms, repayment experience and customer service offerings to bring you the seven best options on the market.

Business line of credit lenders at a glance

American Express Business Line of Credit: Best for quick approvals

$2,000 to $250,000

3.00% to 27.00%  3% to 9% for 6-month loans
6% to 18% for 12-month loans
9% to 27% for 18-month loans
12% to 18% for 24-month loans

6, 12, 18 or 24 months

Pros
  • Online approval only takes minutes
  • Offers instant deposits once approved if you have an American Express Business Checking account
  • Low annual revenue requirement ($36,000)
Cons
  • Personal guarantee required
  • Each draw counts as a separate installment loan
  • Subject to account review

Why we picked it

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An American Express Business Line of Credit is an excellent option if you need a quick business loan for your company. With up to $250,000 of revolving funds, you can tackle immediate business needs as they arise, with enough to cover emergency expenses down the road. If approved, you can receive funds almost instantly. However, monthly fees vary based on the term you select.

Read our full American Express Business Line of Credit review.

How to qualify

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In order to qualify, you’ll need to meet American Express’s criteria of:

  • Minimum credit score: 660
  • Minimum time in business: 12 months
  • Minimum annual revenue: $36,000

Bluevine: Best for affordable interest rates

$6,000 to $250,000

7.80%

6 or 12 months

Pros
  • No monthly maintenance fees
  • Receive funds in as little as 24 hours, or faster with a Bluevine checking account
  • Low starting interest rate of 7.80%
Cons
  • Not available in Nevada, North Dakota, South Dakota or any U.S. territories
  • Higher annual revenue requirement
  • Short repayment terms of 6 or 12 months

Why we picked it

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With interest rates starting at just 7.80%, qualified businesses can take advantage of Bluevine’s business line of credit, which has no hidden fees and quick funding times. If approved, you could access up to $250,000 in as little as 24 hours — with no restrictions on how to spend the funds.

Still, Bluevine imposes some eligibility restrictions on its products. Its line of credit is not available to business owners who live in Nevada, North Dakota, South Dakota or any U.S. territories. Additionally, at $120,000, its annual revenue requirement is higher than some of the competition.

Read our full Bluevine Business Line of Credit review.

How to qualify

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In order to qualify, you’ll need to meet Bluevine’s criteria of:

  • Minimum credit score: 625
  • Minimum time in business: 12 months
  • Minimum annual revenue: $120,000

OnDeck: Best for same-day funding

$6,000 to $100,000

39.90%  This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.

12, 18 or 24 months

Pros
  • Same-day funding available
  • Offers lines of credit without collateral
  • Apply without a hard credit check
Cons
  • Funding not available in North Dakota
  • High average interest rate
  • Low maximum borrowing amount

Why we picked it

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If you need same-day funding, OnDeck offers an unsecured line of credit, worth up to $100,000. There are no added draw fees. However, while OnDeck doesn’t disclose its absolute minimum rates, the average rate given to borrowers is fairly high at 56%.

Read our full OnDeck Business Loan review.

How to qualify

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In order to qualify, you’ll need to meet OnDeck’s criteria of:

  • Minimum credit score: 625
  • Minimum time in business: 12 months
  • Minimum annual revenue: $100,000

Fundbox: Best for bad credit

Up to $150,000

4.66% to 8.99%  4.66% (12 weeks)
8.99% (24 weeks)

12 or 24 weeks

Pros
  • Low minimum credit score requirement
  • Startup friendly: Short time in business requirement
  • No prepayment penalties
Cons
  • Requires a personal guarantee
  • Short repayment terms
  • Lower borrowing cap

Why we picked it

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If you have poor credit, Fundbox might be a good option. With a minimum credit score requirement of 600, low-credit borrowers can access revolving funds up to $150,000 to use toward various business expenses. Businesses must have an annual revenue of $100,000 or greater to qualify for Fundbox’s business credit lines. If approved, you can receive funds the next business day.

Read our full Fundbox review.

How to qualify

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In order to qualify, you’ll need to meet Fundbox’s criteria of:

  • Minimum credit score: 600
  • Minimum time in business: 6 months
  • Minimum annual revenue: $100,000

Wells Fargo: Best for startups

$5,000 to $50,000

12.5%  4.50% + the prime rate, which is currently 8.00%

60 months (no annual review)

Pros
  • No annual fee
  • Automatic enrollment in a free points-based rewards program
  • No collateral required
Cons
  • Must provide a personal guarantee
  • Low borrowing cap
  • Not available to business owners with household liquid assets over $500,000

Why we picked it

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Companies less than two years old can apply for startup business financing with the Wells Fargo Small Business Advantage unsecured line of credit. Backed by the Small Business Administration (SBA), this line of credit comes with no annual fees and undergoes a review once every five years. More established businesses may want to consider the Wells Fargo BusinessLine line of credit to access higher amounts at a lower rate.

Read our full Wells Fargo Business Loan review.

How to qualify

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In order to qualify, you’ll need to meet Wells Fargo’s criteria of:

  • Minimum credit score: Typically 680 or higher
  • Minimum time in business: Not applicable
  • Minimum annual revenue: Not disclosed

Bank of America: Best for secured lines of credit

Lines of credit start at $25,000

9.00%

12 months

Pros
  • Rate discounts offered to Bank of America Preferred Rewards members
  • Offers a free business credit score tool
  • Offers discount to veterans
Cons
  • High annual revenue requirement
  • Subject to an annual review
  • Doesn’t disclose credit score requirements or associated fees

Why we picked it

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Bank of America’s secured line of credit comes with a high minimum borrowing amount and affordable interest rate for well-qualified borrowers. Plus, it offers plenty of opportunities to earn rate discounts. However, it may not be the best fit for every borrower. The company doesn’t disclose its minimum credit score requirements and, at $250,000, the annual revenue requirement is fairly high compared to the competition.

Read our Bank of America Business Loan review.

How to qualify

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In order to qualify, you’ll need to meet Bank of America’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business: 24 months
  • Minimum annual revenue: $250,000

Truist: Best for longer repayment terms

Up to $250,000

Not disclosed

60 months

Pros
  • No minimum time in business requirement
  • No minimum annual revenue requirement
  • Longer repayment terms available
Cons
  • Lacks transparency around interest rates and minimum credit score requirement
  • Charges origination fees

Why we picked it

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If you need the ability to borrow money as you go and a longer repayment term, consider Truist’s line of credit. Its secured line of credit offers access to up to $250,000 with repayment terms of up to 60 months. As an added bonus, the company doesn’t impose minimum annual revenue or time in business requirements.

Yet, Truist doesn’t publicly share its credit score requirements or interest rate information, which can make it hard to tell if this line of credit is the right fit for you. Plus, their secured product can come with some hefty fees, including a title insurance premium and recording fees, among other charges.

Read our full Truist Business Loan review

How to qualify

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In order to qualify, you’ll need to meet Truist’s criteria of:

  • Minimum credit score: Not disclosed
  • Minimum time in business: None, but extra paperwork may be required if you’ve been in business for less than two years
  • Minimum annual revenue: None

What is a business line of credit?

A business line of credit is a type of small business financing that works fairly similarly to a credit card.

Once approved, you’ll have the option to borrow money up to a set limit and you’ll only pay interest on the amount you’ve borrowed. As you pay down your balance, you’ll be able to borrow against it again.

Lines of credit can help cover unexpected business expenses, such as inventory, payroll or seasonal fluctuations in revenue.

Types of business lines of credit

There are two main types of business lines of credit that you can choose from:

Secured line of credit

A secured business loan requires you to put up collateral, such as real estate or equipment to back the loan. If you fail to repay a secured loan or line of credit, the lender has the right to seize your assets as a form of repayment.

Because of that possibility, secured lines of credit are viewed as less risky for the lender. Lenders are often willing to offer better terms, such as higher funding caps and lower interest rates on secured loan products.

Unsecured line of credit

In contrast, an unsecured business line of credit doesn’t require collateral. In this case, approval is typically based on the strength of your personal financial profile and business history.

However, the lack of collateral doesn’t mean you’re off the hook if you don’t repay your unsecured loan. Some lenders may put a lien on your business assets or require you to sign a personal guarantee. Your credit score will also likely take a hit.

Business line of credit requirements

Lenders typically look at the following to determine your eligibility for a business line of credit:

 Credit score: Your personal FICO Score and business credit report both play a role in determining your creditworthiness. Many lenders require a minimum credit score of 600 (or more) when you apply for a business line of credit, although having a higher score can help you secure a better interest rate.

 Time in business: Most lenders want a steady track record of at least one to two years in business, although certain lenders will work with those in operation for only six months.

 Annual revenue: You must show a steady income stream to qualify for small business financing. The amount varies greatly, with some lenders accepting annual revenue as low as $36,000 while others want to see $250,000.

Where to get a business line of credit

You have several options when applying for a business line of credit.

Banks or credit unions

You can access different business loans with a traditional bank or credit union. Typically, these lenders offer competitive rates and terms, but requirements may be fairly strict, often requiring a solid credit history and revenue, plus several years in business. You might also need to pay more fees and provide collateral to secure the funds.

Online lenders

Since alternative lenders incorporate a streamlined application process, they tend to be more lenient than traditional banks regarding qualifications and requirements and can provide access to funds faster. Certain alternative lenders even work with startups or offer bad credit business loans.

In addition, online lenders often offer other business loan products, such as inventory financing and franchise loans. But beware, these lenders typically have higher fees and lower credit limits than traditional bank loans.

U.S. Small Business Administration (SBA)

You can also consider an SBA line of credit through the SBA CAPLines program. An SBA revolving line of credit provides short-term financing that can reach up to $5 million with repayment terms of up to ten years.

Pros and cons of a business line of credit

Even if you’re eligible for a business line of credit, it might not be the best financing for your business’s specific needs. Here’s what to consider as you make your decision.

ProsCons

 Withdraw what you need and when you need it, helping limit over-borrowing

 You only pay interest on what you borrow, not on the total limit

 Usually has lower interest rates and higher borrowing limits than a credit card

 Not suitable for large purchases or long-term expenses

 You may need to provide collateral

 Additional draw or maintenance fees can add up over time

How to compare business lines of credit

When picking the best business line of credit for your company, you’ll want to compare the following details:

  • Interest rate: The interest rate will have a major effect on how much you pay. Compare rates from multiple lenders to get the best rate, and check if the interest rate is variable or fixed.
  • Repayment term: Many lines of credit require daily, weekly or monthly payments. Check your business budget to ensure you can afford the payments and choose a lender with a payment schedule that works for your business.
  • Time to funding: Ask potential lenders about their application process and time to funding. Many online lenders can make a credit decision within minutes, whereas traditional banks might take up to two weeks or longer.
  • Additional fees: Before signing up, check to see if the line of credit you’re considering has maintenance and draw fees, as well as origination fees, late charges or business loan prepayment penalties.
  • Loan purpose: While a business line of credit is great for day-to-day expenses, you may be better off with a long-term business loan for more significant projects, or a commercial real estate loan for expansions.
  • Qualification criteria: Make sure you can meet the lender’s specific requirements and that their products are available in your state and for your type of business.

Alternatives to business lines of credit

If a business line of credit doesn’t seem like the best fit for you, there are plenty of alternative options available, including:

  • Business term loan: A business term loan will provide you with all of your funding in one lump sum payment. As a result, it may be a better option than a line of credit if you have to cover a large one-time expense.
  • Business credit card: A business credit card is another form of revolving credit where you only pay for what you use. The most significant difference between business lines of credit and credit cards is that credit cards carry higher interest rates than lines of credit. That said, they also often come with reward programs that most lines of credit don’t offer.
  • Invoice factoring: Invoice factoring involves selling your unpaid invoices to a third-party company that fronts you a percentage of the amount due and takes responsibility for pursuing repayment. When the invoice is paid, you’ll receive the remaining percentage, minus any fees charged by the factoring company.
  • Merchant cash advance: For their part, merchant cash advances (MCAs) provide you with an advance on your debit or credit card sales in exchange for a percentage of the profits. However, it’s important to be aware that interest rates can be high with this method of financing.

How we chose the best business lines of credit

We reviewed the leading small business lenders to determine the overall best business lines of credit. To create our list, we evaluated lenders based on the following criteria:

  • Rates and terms: We prioritize lenders with competitive rates, limited fees, flexible repayment terms, a range of credit amounts and APR discounts.
  • Minimum time in business: We prioritized companies with time in business requirements of less than 24 months.
  • Repayment experience: We consider each lender’s reputation and overall business model. We also favor lenders that report to all major credit bureaus to help businesses build their credit.
  • Customer service. We favor lenders that offer reliable customer service and provide customer perks, like free business coaching.

Best business line of credit summary