Best Business Lines Of Credit For Small Businesses
These lenders offer the best credit lines currently available to businesses of all sizes, from startups to stable and established operations.
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Expert Analyst & Reviewer
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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.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
|---|---|---|
 | Best for bad credit. | Best for bad credit.
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 | Best for working capital. | Best for working capital.
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 | Best for large credit needs. | Best for large credit needs.
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 | Best for startups and new businesses. | Best for startups and new businesses.
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 | Best for fixed-rate lines of credit. | Best for fixed-rate lines of credit.
|
Other Featured Options:
- PNC Bank Small Business Loans: Best for longer repayment terms.
Read more below to learn why we chose these options.
Table of Contents
How We Picked The Best Business Line Of Credit 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 up front, 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 Lines Of Credit For 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
Lendio
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Best for bad credit.
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, 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.
2. OnDeck
OnDeck
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Best for working capital.
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.
3. National Business Capital
National Business Capital
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Best for large credit needs.
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
4. Fundbox
Fundbox
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Best for startups and new businesses.
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 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 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.
5. BlueVine
BlueVine
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Best for fixed-rate lines of credit.
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 is best known for B2B invoice factoring, but it also offers a revolving line of credit. 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
PNC Bank Small Business Loans
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Best for longer repayment terms.
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.
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 has rewards programs, and generally has 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 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?
Business Line Of Credit FAQs
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, a traditional bank or credit union generally provides 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 our article, Which Are The Best Banks For Small Business Loans, to learn about our favorite banks for business financing.
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 Lines Of Credit For 2022
- Lendio: Best for bad credit.
- OnDeck: Best for working capital.
- National Business Capital: Best for large credit needs.
- Fundbox: Best for startups and new businesses.
- BlueVine: Best for fixed-rate lines of credit.
- PNC Bank Small Business Loans: Best for longer repayment terms.
Chris Motola
Expert Analyst & Reviewer at Merchant Maverick
An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.
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Very interesting. This information is very helpful, are you in the business; What is your core business?
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