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

Pros

A high potential credit limit
Long-term financing options available
Applicants can quickly be prequalified
The application process is fast and easy

Cons

Rates can be expensive
Funds can take a while to disburse

Lendio is not an originator of loans. Instead, the company provides a platform for business financing that matches businesses to funders. Just tell Lendio about your business and the type of funding you’re looking for, and Lendio will (hopefully!) take care of the rest.

Lendio works with over 300 different lenders, so it doesn’t have a single set of qualifications for funding that a business must meet. That means businesses with bad credit can apply for a line of credit, although you should bear in mind that a business with bad credit may receive fewer matches than ones with stronger credit.

After you apply, you should get offers from the lenders that you may be eligible for in 72 hours or less, which is on the slow side for an online lender.

Get Started With Lendio

2. OnDeck: Best For Working Capital

OnDeck

Pros

Borrower qualifications are lower than what traditional banks offer
Lower costs for repeat customers
The application process is fast and easy
Funds are disbursed quickly

Cons

Financing isn’t available in some states
Not available to businesses in some industries
Rates can be expensive

OnDeck is known for offering fixed-term business loans, but it also offers business lines of credit.

Although OnDeck’s rates (which currently range from an Average 48.9% APR) can get a little high, OnDeck has a fast application process and easy-to-meet borrower requirements. Most borrowers will have a final decision within 24 hours after applying. If approved, borrowers can start requesting funds from their credit line immediately. That’s why we’ve designated OnDeck as the best choice for businesses needing an immediate unsecured line of credit.

OnDeck’s credit limits currently range from $6,000 to $100,000, with repayment terms of 12 months. Unlike the lender’s short-term loans, which are usually repaid daily, draws from your credit line are repaid weekly. OnDeck does not charge a fee for drawing from your line, but it does charge a $20 maintenance fee, which adds to the overall cost.

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3. National Business Capital: Best For Large Credit Needs

National Business Capital

Get Started With National Business Capital

Pros

Financing is available to qualified startups
High borrowing amounts
A wide variety of payment schedules offered, from short-term to long-term
The application process is fast and easy

Cons

Rates can be expensive
May require a collateral/blanket lien

Like Lendio, National Business Capital is a business funding platform that matches you to the lenders best suited to your funding needs from its network of loan originators. There are over 75 lenders in National Business Capital’s lender marketplace.

National Business Capital does not require its line of credit applicants to have a minimum credit score, making National Business Capital a business line of credit lender well suited to businesses with bad credit. Plus, it only requires three months of business history, making it easier for certain business types to qualify. However, you will need at least $120,000 in annual gross sales to qualify. What’s more, larger businesses will be happy to learn of the high potential credit limit of $5 million.

Unfortunately, some borrowers may only be eligible for a secured line of credit and will probably need to provide collateral and/or a personal guarantee.

4. Fundbox: Best Business Line of Credit For Startups

Fundbox

Pros

The application process is fast and easy
Low personal credit score requirements
Multiple avenues of customer support

Cons

Rates can be expensive
Repayments are required frequently

Fundbox currently offers the most accessible unsecured lines of credit for businesses available. To qualify, you must have been using a compatible business account (with one of over 12,000 banking institutions in the US) for at least three months or compatible accounting or invoicing software for two months. You’ll also need a credit score of at least 600.

Fundbox also has one of the fastest applications available. Typically, you can create an account, apply, and get a decision within a few minutes. Borrowers might be eligible for a credit line up to $150,000 with repayment term lengths up to 24 weeks.

Certainly, Fundbox offers a useful service, but it’s not suitable for all businesses. The fees are higher than those of services that cater to more established businesses, so if you have been in business for a while and have strong financials, you might be able to find better rates elsewhere. Nonetheless, Fundbox is an invaluable source of financing for small businesses in need of short-term working capital.

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5. BlueVine: Best For Fixed-Rate Lines Of Credit

BlueVine

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Get Started With BlueVine

Pros

Low credit score qualifications
A fast and easy application
Quick disbursal of funds

Cons

Not available in some states
Rates can be expensive

BlueVine offers a revolving line of credit, as well as business checking accounts. Businesses with a 600 or better credit score can qualify for a six or 12-month credit line of up to $250,000. The 12-month version features monthly repayments, while the six-month version is repaid weekly. You can also repay early without penalty.

While BlueVine’s minimum credit score for borrowing is pretty lenient, you’ll want to keep an eye on your debt levels and credit score even after you’ve been approved. BlueVine has been known to reject individual credit draws if it believes there’s a danger the borrower may not repay.

6. PNC Bank: Best For Longer Repayment Terms

PNC Bank Small Business Loans

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Get Started With PNC Bank Small Business Loans

Pros

Low-interest rates
Long repayment window
High borrowing amounts

Cons

Not available in some states
Stringent borrower qualifications

Most of the other slots in this list are filled with alternative lenders, as these funders make it fast and easy to apply and be approved. Nevertheless, 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. PNC Bank, in particular, is worth mentioning for its generous repayment window.

PNC Bank’s lines of credit come in secured and unsecured forms, with borrowing limits of up to $3 million and $100,000, respectively. If approved, you’ll have a seven-year revolving credit period, making it a great long-term “rainy day” fund. Monthly payments are 1.5% of your current balance, with a minimum payment of $100. There’s also a $175 annual fee to keep your line of credit open. You’ll also want to keep in mind that, unlike many of the other lenders on this list, PNC’s lines of credit have variable interest rates.