What Is The Best Business Line Of Credit For Your Small Business?

Lendio isn’t a direct lender. Instead, it’s a loan marketplace that connects small business owners with funding through its 75 lending partners. Because Lendio works with multiple lenders, it may be possible for businesses to qualify for a line of credit that couldn’t find funding elsewhere. This means that borrowers with credit challenges, newer businesses, and other businesses that face barriers to funding may find what they need through Lendio’s lending network.

With just one application, you can receive multiple offers to compare. In addition to lines of credit, Lendio’s network also provides access to short- and long-term funding options, from merchant cash advances to SBA loans.

Lendio’s network of lenders offers business lines from $1,000 to $500,000. Repayment terms are up to two years.

In addition to lines of credit, you may also apply for other funding including:

• SBA loans
• Short-term loans
• Equipment financing
• Merchant cash advances
• Commercial mortgages
• Business credit cards

Lendio’s rates and fees vary by lender. Rates generally range from 8% to 24%, with repayment terms of one or two years. It may take up to two weeks to receive funding.

Additional fees vary by lender.

To qualify for a line of credit, you must meet the following minimum requirements:

• Minimum credit score of 560
• Annual revenue of at least $50,000
• At least six months in business

OnDeck has pretty lenient requirements for its lines of credit, making it an option for borrowers that may not qualify for funding through a bank. Businesses without a business credit score can also use this line of credit to get started, as OnDeck reports to business credit bureaus.

OnDeck offers fast funding that’s available 24/7, even on weekends and holidays. There are no draw fees, the application process takes just a few minutes, and once approved, you can begin initiating draws against your line of credit immediately.

OnDeck offers revolving lines of credit from $6,000 to $100,000.

Term loans of $5,000 to $250,000 are also available to businesses that need additional capital or longer repayment terms.

OnDeck’s rates for its lines of credit start 29.9% to 69.9%. The lender states that the average APR for its lines of credit is 52.6%. Payments are made weekly and repayment terms are 12 months.

There are no origination or draw fees. However, most borrowers will be required to pay a maintenance fee of $20/month.

To qualify for a line of credit through OnDeck, you must meet these minimum requirements:

• Minimum credit score of 625
• At least $100,000 in annual revenue
• At least one year in business
• Must have a business checking account

OnDeck does not loan to businesses in Nevada, North Dakota, or South Dakota. The lender also has a list of prohibited industries, including but not limited to marijuana dispensaries, adult entertainment businesses, firearm dealers, and gambling.

Similar to Lendio, National Business Capital is a loan aggregator that makes it easy for all types and sizes of businesses to find the funding they need. Through this service, you can connect with numerous lenders that offer business lines of credit.

With lines up to $5 million, National Business Capital is ideal for businesses that need larger amounts of capital. Funding is quick, with many businesses getting funded in 24 to 48 hours. Interest rates are competitive, although newer businesses, borrowers with lower credit scores, businesses with a lack of collateral, and businesses with lower annual revenues may receive rates as high as 60%.

National Business Capital provides eligible businesses with lines of credit from $25,000 to $5 million.

With its network of 75 lenders, National Business Capital can also connect you to other types of funding including:

• Term loans
• SBA loans
• Equipment financing
• Asset-based financing

Since National Business Capital is a loan aggregator, rates and fees vary based on a number of factors, including the lender you work with, as well as personal credit score and annual revenue. Rates range from 5% to 60%. Payment terms and additional fees vary by lender.

To receive a line of credit from National Business Capital, you must meet the following minimum requirements:

• Minimum credit score of 600
• Annual revenue of $120,000
• Time in business of 12 months

Fundbox is a great choice for businesses that want fast funding, as lines of credit can be approved in less than five minutes. Once approved, you can have money in your account as quickly as the next business day.

Fundbox is particularly a great choice for startups and business owners with lower credit scores, as eligibility requirements are far lower than bank requirements. While it does have shorter repayment terms and a weekly payment schedule, Fundbox is a solid choice for businesses that need fast access to up to $150,000 and don’t meet the requirements of traditional lenders.

Fundbox specializes in revolving lines of credit up to $150,000.

Fundbox’s rates start at 4.66% for 12-week terms and 8.99% for 24-week terms. There are no draw fees or other fees.

To qualify for a Fundbox line of credit, you must meet these minimum requirements:

• Minimum credit score of 600
• At least $100,000 in annual revenue
• At least 6 months in business
• Must own a business checking account

If you need fast funding, look no further than Bluevine. The Bluevine line of credit application process takes just minutes, and you can be approved instantly. Once approved, you can begin making draws immediately and receive funds in your account in a matter of hours (for an additional fee).

Bluevine has less stringent requirements than traditional lenders, providing lines of credit to business owners with scores as low as 625. However, it does have high monthly revenue requirements, and funding is only available to businesses that have been in operation for at least two years. Still, businesses that meet these requirements will appreciate the easy application process, fast funding, and competitive fixed rates.

Bluevine offers business lines of credit up to $250,000.

Bluevine charges a fee of 0.3% to 1.5% per week for lines of credit with terms of six months. The lender charges 1.5% to 6.5% per month for lines of credit with 12-month terms. The APR works out to about 15% to 78% for these lines of credit.

A draw fee of 1.6% to 2.5% is charged. If you want to receive your funds in hours (instead of 1-3 business days), you’ll pay a $15 expedited deposit fee.

To qualify for a Bluevine line of credit, you must have a corporation or LLC that is in good standing with your Secretary of State. You must also meet these basic requirements:

• Minimum personal credit score of 625
• Monthly revenue of at least $40,000
• Time in business of at least 24 months
• No bankruptcies for the last three years

Businesses incorporated or operating in Nevada, North Dakota, or South Dakota are ineligible for funding.

Businesses in certain industries, including firearms, controlled substances, and pornography, are also ineligible for Bluevine’s lines of credit.

The other lenders on this list are alternative lenders that specialize in fast funding and lower borrowing requirements. However, it’s worth pointing out that traditional banks still generally offer the best rates and terms in the market to businesses that meet their more stringent qualifications. One such bank is PNC Bank.

PNC Bank offers secured and unsecured business lines of credit that come with competitive interest rates. If approved, you’ll have a seven-year revolving credit period, making it a great long-term “rainy day” fund.

PNC Bank provides two business lines of credit:

• Unsecured lines of credit of $20,000 to $100,000
• Secured lines of credit of $100,001 to $3 million

PNC Bank also offers a range of small business lending services, including:

• Term loans
• SBA loans
• Commercial vehicle loans
• Commercial real estate loans
• Business credit cards

PNC Bank’s rates are variable and are based on the Prime Rate. Repayments are made monthly. For unsecured lines of credit, payments are 1.5% of the balance. Monthly interest-only payments are made for secured lines of credit, although the principal can be paid at any time.

Unsecured lines of credit have an annual fee of $175. Secured lines have an annual fee of 0.25% of the committed line amount.

Secured lines of credit require collateral in the form of non-real estate business assets.

PNC Bank does not list specific eligibility requirements. However, it does give an idea of the specific factors it looks for when evaluating applications for loans. This includes:

• A clean personal credit history for the last five years with no recent 30-day late payments
• A good business credit history
• No evidence of collections, charge-offs, bankruptcies, foreclosures, lawsuits, judgments, or unsatisfied tax liens
• Minimum of three years in business, although options may be available for newer businesses
• A solid debt-to-income ratio
• No late or charged-off payments for prior PNC loans
• Little or no overdraft history for PNC checking accounts