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

These lenders offer the best credit lines currently available to businesses of all sizes, from startups to stable and established operations.

    Erica Seppala
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Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Best business line of credit

Businesses looking for a flexible source of funding may be on the lookout for the best business line of credit. Merchants with a credit line can have short-term funds available within a few days without going through a lengthy application process every time. These funds can be used for many business purposes, such as working capital, business growth, or emergency funds.

Are you looking to gain access to a business line of credit? Or do you have a line of credit already but want to know what your other options are? Either way, you’re in luck! We’ve sought out and evaluated the best credit lines currently available to businesses of all sizes — from startups and incubator businesses to stable and established companies.

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CompanyBest ForNext StepsBest For

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Best for businesses with bad credit.
Best for businesses with bad credit.

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Best business LOC for working capital.
Best business LOC for working capital.

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Best business LOC for large credit needs.
Best business LOC for large credit needs.

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Best LOC for startups and new businesses.
Best LOC for startups and new businesses.

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Best for fixed-rate business lines of credit.
Best for fixed-rate business lines of credit.

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Other Featured Options:

Read more below to learn why we chose these options.

How We Picked The Best Business Line Of Credit (LOC) Lenders

We review numerous lenders here at Merchant Maverick, so what you see below is based on our reviews of each company in question.

We consider the following factors when writing our reviews:

  • Rates & Fees: How much will it cost you?
  • Borrower Requirements: Who qualifies? Are the requirements reasonable given the rates?
  • Borrowing Amounts: Can the lender service typical expenses? Is it aiming for small or large businesses?
  • Application Process: How much of a hassle is it to apply, and how quickly can you expect your money?
  • Transparency: Does the lender reveal its rates and fees upfront, or does it try to hide them from prospective customers?
  • User Reviews: What do customers think about the lender? Have there been a lot of complaints filed?

The Best Business Line Of Credit Options In 2022

We’ve examined the best small business lines of credit and evaluated them according to our criteria. No lender is best for every business, so we’re tailoring our list to fit different business needs. Here are our best business lines of credit for 2022, including Lendio, OnDeck, BlueVine, and more.

1. Lendio: Best For Bad Credit

Lendio



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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.

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2. OnDeck: Best For Working Capital

OnDeck



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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 47.14% 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



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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.

Get Started with National Business Capital

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4. Fundbox: Best Business Line of Credit For Startups

Fundbox



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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.

Get Started with Fundbox

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

BlueVine



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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.

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6. PNC Bank: Best For Longer Repayment Terms

PNC Bank Small Business Loans



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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.

Read our in-depth review

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What Is A Business Line Of Credit Used For?

The biggest advantage offered by business lines of credit is flexibility. It allows businesses to draw as often as needed (within credit limits) to fund both anticipated and unanticipated expenses quickly. Few other financial products give borrowers that much control over their borrowing.

Business lines of credit can be used for any number of working capital expenses, from repairs to expansions. Check with your lender to see what available types of uses you have for your line of credit.

Business Line Of Credit VS Business Credit Cards

You won’t find too many other types of lending that allow such flexibility other than credit cards, which are a form of revolving credit. So why wouldn’t you just use a credit card? This chart breaks down some of the differences.

Type Of Financing Attributes
Lines Of Credit Generally have lower interest rates than credit cards, can be used to draw cash into your account without additional expense, provides working capital, and draws generally aren’t available at POS/online checkout (with some exceptions)
Credit Cards Have interest-free grace periods, are designed primarily to be used at retail POS/online checkout, frequently have rewards programs, and generally have lower credit limits (with some exceptions)

How To Choose The Right Business Line Of Credit Provider

Choosing the right line of credit means taking stock of your company’s needs and understanding the qualifications to successfully apply for a line of credit.

Consider the following when you’re choosing a lender:

  • Cost: Quite simply, can you afford to service the debt you’re taking on? Are cheaper options available?
  • Terms: How long do you have between payments? How long will your line of credit be available?
  • Qualifications: How long does the lender expect you to have been in business? What’s their minimum credit rating? Minimum revenue?
  • Reputation: Does the lender have mostly positive or negative reviews? Do you see common themes between negative reviews?

Business Line Of Credit FAQs

What is the best business line of credit?

Choosing the best business line of credit or a revolving line of credit for your financing needs depends on factors like your business size, credit history, credit scores, how long you’ve been in business, yearly revenue, collateral, and more. Next, you should carefully review lender costs, terms, qualifications, and reputation.

What is the purpose of a business line of credit?

A business line of credit is a flexible way to borrow money to pay for working capital and other qualified expenses. Learn more about how to get a business line of credit, as well as alternatives you may consider, in our comprehensive guide.

Is a business line of credit considered income?

No, you are borrowing the money you get through a business line of credit. It’s not an award or form of personal income.

Can a startup get a line of credit?

Yes, it is possible for a startup to get a line of credit if you find a lender that deals with high-risk borrowers. There are even lending options for startup businesses with no collateral.

What credit score do you need for a business line of credit?

Credit score requirements for business lines of credit vary by lender. Not every lender cares about your credit score, though it generally helps to have one over 600. It is possible to find a line of credit if you have bad credit, but it’s more difficult.

What Is The Best Line Of Credit For Your Business?

Between the options above, most business owners will be able to find financing to suit their needs. All these lines of credit have relatively quick and easy applications and will ensure that you have the capital you need to weather rough patches or grow your business. If you want to explore even more LOC options, visit our in-depth line of credit reviews.

Bank And Credit Union Lines Of Credit

Note that many banks and credit unions offer business financing, such as lines of credit. When it comes to business financing, a traditional bank or credit union generally provides the best rates and fees. On the other hand, this kind of financing is usually difficult to qualify for. However, if you have good credit and a stable business generating consistent revenue, you might have a chance at qualifying. Learn more about the best banks for small business loans before you start the application process.

Business Credit Card VS Line Of Credit

If you don’t yet qualify, a business credit card fulfills many of the same needs as a credit line. With a business credit card, you will have immediate access to an additional source of funds and can defer payments to a more convenient time. Additionally, business credit cards offer grace periods, signup bonuses, and savings via rewards, which are not provided by business lines of credit. Just be aware that credit cards typically have higher interest rates than lines of credit. Check out our favorite business credit cards to learn about the cards that might be right for your business.

In Summary: The Best Business Line Of Credit Options In 2022

  1. Lendio: Best for businesses with bad credit.
  2. OnDeck: Best business LOC for working capital.
  3. National Business Capital: Best business LOC for large credit needs.
  4. Fundbox: Best LOC for startups and new businesses.
  5. BlueVine: Best for fixed-rate business lines of credit.
  6. PNC Bank Small Business Loans: Best LOC for longer repayment terms.
Erica Seppala

Erica Seppala

Expert Analyst & Reviewer at Merchant Maverick
An expert in accounting, finance, and point of sale, Erica has been researching and writing about all things small-business since 2018. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, Real Simple, and Reader's Digest. She is a graduate of Limestone College.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.

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1 Comment

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Antonio Luciano

    Very interesting. This information is very helpful, are you in the business; What is your core business?

      This comment refers to an earlier version of this post and may be outdated.

    Comments are closed.

    The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.

    Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.

    Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

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