Advertiser Disclosure

🏦 Compare quotes from multiple PPP/SBA lenders at Fundera.

The Best Lines Of Credit For Small Businesses In 2020

  • 1 comment
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
business line of credit loan

A line of credit is one of the most useful tools at a business owner’s disposal. Merchants with a line of credit 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 reasons, such as working capital, business growth, or emergency funds.

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

Learn More About Our Top Picks

CompanySummaryNext Steps
Founded in 2013, BlueVine offers three services to solve cash flow problems: business loans, lines of credit, and invoice factoring. You have a fair chance at qualifying for a line of credit from BlueVine if you've been in business at least six months, have a credit score of at least 600, and make $120,000 or more per year.

Get Started

Read More

OnDeck is known for offering fixed-term business loans, but it also offers business lines of credit. Although OnDeck's rates can get a little high, OnDeck has a fast application process and easy-to-meet borrower requirements.

Get Started

Read More

Kabbage offers one of the most popular and well-known lines of credit available. This service is known for having a fast, easy application process and for being a convenient way to access funds.

Apply Now

Read More

Gone are the days when you had to have a large, well-established business to qualify for a credit line. With Fundbox, you might qualify even if you’ve only been in business for three months. This service offers invoice-backed and traditional lines of credit to eligible businesses.

Visit Site

Read More

StreetShares is a small business lender that offers many financial products to small businesses, including lines of credit. This lender has relatively low borrower requirements -- you might qualify if you have at least 12 months in business, make at least $100,000 annually, and have fair credit.

Compare

Read More

Other Featured Options:

  • Fundation: Fundation is an online lender that offers lines of credit and term loans to eligible businesses. Because of the employee requirement, Fundation might be a little more difficult to qualify for, but eligible borrowers will benefit from favorable terms and fees. Fundation offers credit lines between $20,000 and $150,000.

Read more below to learn why we chose these options.

How We Picked The Best Lines Of Credit

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

We take the following into considering when writing our reviews:

  • Rates & Fees: How much will it cost you?
  • Borrower Requirements: Who qualifies? And 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 up front, or does it try to hide them from prospective customers?
  • User Reviews: What do customers have to say about the lender? Have there been numerous complaints filed?

Jump back to comparison chart

1. BlueVine

BlueVine



Get Started

Read our Review

Founded in 2013, BlueVine offers three services to solve cash flow problems: business loans, lines of credit, and invoice factoring.

You have a fair chance at qualifying for a line of credit from BlueVine if you’ve been in business at least six months, have a credit score of at least 600, and make $120,000 or more per year. Borrowers might be eligible for a credit line up to $250,000 with repayment terms of six months. (BlueVine also offers a line of credit with a 12-month repayment term, but the borrower requirements are more difficult to meet.) Or, if you invoice your customers, invoice factoring might be worth your consideration — BlueVine doesn’t require monthly minimums, factoring of specific invoices, or long-term contracts. For one-time funding needs, BlueVine also offers business term loans.

The application process for BlueVine is fast and straightforward. In most cases, you can expect to have a decision regarding your application within 24 hours. Unlike some other services, you will not have to submit a lot of documentation to be considered for a credit line.

As you might expect, larger organizations will want to give BlueVine a pass. With APRs that range from 15% – 78%, well-established businesses might be able to find lower rates elsewhere. However, smaller businesses will find this service worth considering.

Get Started with BlueVine

Read our in-depth review

Jump back to comparison chart

2. OnDeck

OnDeck



Get Started

Read our Review

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 19.9% - 61.9% 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.

OnDeck’s credit lines currently range from $6,000 to $100,000, with repayment terms of six 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.

Get Started with OnDeck

Read our in-depth review

Jump back to comparison chart

3. Kabbage

Kabbage



Apply Now

Read our Review

Kabbage offers one of the most popular and well-known lines of credit available. This service is known for having a fast, easy application process and for being a convenient way to access funds.

Like Fundbox, Kabbage’s application process is completely automated. Most potential borrowers will be able to make an account, fill out an application, and check their eligibility within a few minutes. If you are approved (and you like your rates), you can start requesting funds from your line immediately. With relatively low revenue and time in business requirements, a lot of businesses will qualify for a credit line from Kabbage. This lender does not enforce a specific minimum credit score, but it will run a check on your credit before giving you a final decision on your eligibility, rates, and fees. You’ll also have some flexibility in choosing between six, 12, and 18 month draw periods.

Some merchants might also like that it’s very easy to request funds from your Kabbage account. In addition to having a mobile app, Kabbage offers a spending card, called the Kabbage Card, free of charge to all account holders. With a Kabbage Card, you can pay for goods and services right from your credit line — you don’t have to wait for Kabbage to send the funds to your bank account.

On the other hand, with APRs that range from approximately 24% - 99%, Kabbage lines of credit have the potential to be the most expensive on this list. However, your rates will depend on your creditworthiness, the strength of your financials, and some other factors. If you have an especially strong business, you might be eligible for lower rates. Regardless of the potentially high rates, Kabbage is worth checking out if you need fast access to a convenient line of credit.

Get Started with Kabbage

Read our in-depth review

Jump back to comparison chart

4. Fundbox

Fundbox



Visit Site

Read our Review

Gone are the days when you had to have a large, well-established business to qualify for a credit line. With Fundbox, you might qualify even if you’ve only been in business for three months. This service offers invoice-backed and traditional lines of credit to eligible businesses.

Fundbox currently offers the most accessible business lines of credit 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 500, which, hopefully, should be doable for just about everyone.

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 $100,000 with repayment term lengths up to 24 weeks.

Certainly, Fundbox offers a useful service, but it’s not right 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

Read our in-depth review

Jump back to comparison chart

5. StreetShares

StreetShares



Compare

Read our Review

StreetShares is a small business lender that offers many financial products to small businesses, including lines of credit. This lender has relatively low borrower requirements — you might qualify if you have at least 12 months in business, make at least $100,000 annually, and have fair credit.

StreetShares’ credit lines have a limit of $250,000, but the amount you will personally be offered will be about 20% of your annual revenue. StreetShares’ APRs range from 7% - 39.99%, which is competitive with many other online lines of credit. Draws from your line have a maximum repayment length of 36 months, which is the longest draw term length on this list.

The application process for StreetShares generally takes less than a week. Naturally, once you have access to a credit line, you can draw at any time without going through an application. That said, StreetShares will occasionally request to see your financials if you haven’t drawn from your line in a while.

StreetShares also offers traditional business term loans.

Read our in-depth review

Jump back to comparison chart

6. Fundation

Fundation



Visit Site

Read our Review

Fundation is an online lender that offers lines of credit and term loans to eligible businesses.

Because of the employee requirement, Fundation might be a little more difficult to qualify for, but eligible borrowers will benefit from favorable terms and fees. Fundation offers credit lines between $20,000 and $150,000. Draws have repayment terms of 18 months, which is longer than most other lenders on this list. Additionally, with APRs that range from 7.99% – 29.99%, Fundation’s rates are lower than those of most of the above lenders.

The application process to gain access to a line of credit is short, and most applicants can expect a decision in fewer than seven days. Between the low rates and the fast application process, this is, without a doubt, a lender worth checking out if your business isn’t yet big enough to get a line of credit from a bank or the SBA.

Get Started with Fundation

Read our in-depth review

Jump back to comparison chart

When You Should Get A Business Line Of Credit

Business lines of credit aren’t necessarily the cheapest or easiest way to borrow money, so why would you want one?

The most significant advantage offered by a line of credit is flexibility. Here’s Pegah Saeedi of BlueVine on her company’s lines of credit:

A BlueVine Line of Credit is a great tool for businesses when they need quick access to revolving credit. It allows for a one time use or multiple uses of the line, depending on what their business need is at the time. A BlueVine Line of Credit can help when you have unexpected cash flow gaps, and can also be used for expansion, new projects, new equipment, and more.

Aditya Narula, head of the customer service department at Kabbage, has a similar take:

Lines of credit give small business owners greater control over their cash flow. With the flexibility to take only what they need and instant deposits, small business owners can rely on their Kabbage line of credit to help with rent, payroll, inventory and invest in their business. Flexible funding is especially critical to growth and strategic business management. To capitalize on opportunities, small business owners need to be able to access capital quickly – they can’t afford to wait weeks or months for loan approvals. So, a line of credit is important to staying ahead.

A business line of credit allows you to draw money as you need it, rather than taking out a large lump sum and immediately paying back interest on it. It can also serve as a rainy day fund for unexpected expenses, granting your business some additional security.

And best of all, they’re (usually) reusable!

“Due to the revolving nature of our line of credit,” says Saeedi, “the credit line will replenish as you make payments.”

You won’t find too many other types of lending that allow that other than credit cards, which are, you guessed it, a form of revolving credit.

How To Choose The Right Line Of Credit

Choosing the right line of credit means taking stock of your needs as a company as well as understanding what you actually qualify for.

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?

You’ll also want to consider how quickly you’ll need the funds.

Saeedi, again:

A business owner should consider their eligibility as well as the lender when looking for a line of credit to see what would work best for their situation. Traditional lenders, like banks, can take weeks and sometimes months to get an approval, and therefore aren’t a good fit if you want access to quick and flexible funding.

On the other hand, if you have good credit and can spare the time, you’ll usually get better rates with a bank.

Final Thoughts

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.

Note that many banks and credit unions offer business financing, such as lines of credit. When it comes to business financing, banks and credit unions generally offer the best rates and fees. On the other hand, they are 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. Head over to the Best Banks For Small Business Loans to learn about our favorite banks for business financing.

If you don’t yet qualify, don’t forget that a business credit card fulfills many of the same needs as a line of credit. 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.

A Last Look At Our Top Picks

  1. BlueVine
    Summary - Founded in 2013, BlueVine offers three services to solve cash flow problems: business loans, lines of credit, and invoice factoring. You have a fair chance at qualifying for a line of credit from BlueVine if you've been in business at least six months, have a credit score of at least 600, and make $120,000 or more per year.
  2. OnDeck
    Summary - OnDeck is known for offering fixed-term business loans, but it also offers business lines of credit. Although OnDeck's rates can get a little high, OnDeck has a fast application process and easy-to-meet borrower requirements.
  3. Kabbage
    Summary - Kabbage offers one of the most popular and well-known lines of credit available. This service is known for having a fast, easy application process and for being a convenient way to access funds.
  4. Fundbox
    Summary - Gone are the days when you had to have a large, well-established business to qualify for a credit line. With Fundbox, you might qualify even if you’ve only been in business for three months. This service offers invoice-backed and traditional lines of credit to eligible businesses.
  5. StreetShares
    Summary - StreetShares is a small business lender that offers many financial products to small businesses, including lines of credit. This lender has relatively low borrower requirements -- you might qualify if you have at least 12 months in business, make at least $100,000 annually, and have fair credit.
  6. Fundation
    Summary - Fundation is an online lender that offers lines of credit and term loans to eligible businesses. Because of the employee requirement, Fundation might be a little more difficult to qualify for, but eligible borrowers will benefit from favorable terms and fees. Fundation offers credit lines between $20,000 and $150,000.
Bianca Crouse

Bianca Crouse

Bianca Crouse has been writing about business loans and finance for three years. In addition to Merchant Maverick, she has appeared in Startup Nation and Business.com, among others. She has a BA in English from George Fox University and lives in the Pacific Northwest.
Bianca Crouse
Leave a comment

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.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    Your Review

    Comment moderation is enabled. Your comment may take some time to appear.
    Please read the "User Review and Comment Policy" before posting.

    Share

    Featured Offer: We Recommend QuickBooks 🎉

    Get 50% QuickBooks Online for a limited time!

    Take it for a spin with a free trial.

    Try QuickBooks Today

    We Recommend Fattmerchant 🏆

    Fattmerchant is one of our top picks for credit card processing!

     

     

    We love Fattmerchant's predictable pricing and excellent service.

    Get Started With Fattmerchant

    Get started with no commitment today.

    We Recommend Brex Corporate Card for Startups 🏆

    Brex Corporate Card for Startups is one of our top picks for business credit cards!

     

     

    For a limited time get 50,000 rewards points when you spend $1000 with Brex.

    Get Started With Brex Corporate Card for Startups

    Get started with no commitment today.

    We Recommend PaymentCloud 🏆

    PaymentCloud is one of our top picks for credit card processing!

     

     

    We love PaymentCloud's predictable pricing and excellent service.

    Get Started With PaymentCloud

    Get started with no commitment today.

    We Recommend National Processing 🏆

    National Processing is one of our top picks for credit card processing and POS!

     

     

    National Processing meets our high standards for credit card processing and is our preferred provider for Clover POS, among other POS systems. Get a quote today!

    Get Started With National Processing

    Get started with no commitment today.

    ⭐️ Featured Promo! ⭐️

    Sign up now and qualify for a limited time deal!

    Standard Plan: One month free ($29.95 value)
    Plus Plan: Two months free ($159.90 value)
    Pro Plan: Three months free ($899.85 value)

    Learn More

    At BigCommerce

    We Recommend PaymentCloud 🏆

    PaymentCloud is one of our top picks for credit card processing!

     

     

    We love PaymentCloud's predictable pricing and excellent service.

    Get Started With PaymentCloud

    Get started with no commitment today.

    We Recommend Fattmerchant 🏆

    Fattmerchant is one of our top picks for credit card processing!

     

     

    We love Fattmerchant's predictable pricing and excellent service.

    Get Started With Fattmerchant

    Get started with no commitment today.

    Get 60% Off FreshBooks ✨

    FreshBooks is offering 60% off of their accounting and invoicing software for six months to help support businesses during COVID-19.

    Start For Free

    At FreshBooks

    We Recommend ShopKeep POS 🏆

    ShopKeep POS is one of our top picks for Point of Sale software!

     

     

    ShopKeep is offering free eCommerce tools and free online ordering for all existing and new customers for the next 3 months!

    Get Started With ShopKeep POS

    Get started with no commitment today.

    We Recommend Stamps.com 🏆

    Stamps.com is one of our top picks for shipping software!

     

     

    Start a 4-week free trial with Stamps.com and get $5 in free postage to test it out. No promo code required.

    Get Started With Stamps.com

    Get started with no commitment today.

    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.

    We Highly Recommend 🏆

    is one of our top picks for credit card processing!

    We love 's predictable pricing and excellent service.

    Their standard offer has no early termination fee and no junk fees. 👍

    Learn More At

    Sign up for the Maverick Newsletter

    • We occasionally send out emails with special offers.