The Best Business Lines Of Credit For 2018
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 long 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.
The following lines of credit are sorted (roughly) by ease of qualification (from easiest to most difficult). Bear in mind that, in general, the easier it is to qualify for a line of credit, the higher the rates and fees you will be offered.
| Fundbox | BlueVine | Kabbage | |
 |  |  | |
| Products Offered | • Lines of credit • Invoice financing | • Lines of credit • Invoice factoring | • Lines of credit |
| Best For | Small businesses looking for a line of credit or invoice financing for consistent cash flow. | Small businesses looking for a line of credit or traditional invoice factoring for consistent cash flow. | Small businesses looking for a line of credit with easy-to-access funds and a fast application process. |
| Required Time in Business | N/A | 6 months | 12 months |
| Required Revenue | N/A | $120,000 /year | $4,200 /month |
| Required Credit Score | N/A | 500 | N/A |
| Read Review | Read Review | Read Review | |
| Visit Site | Visit Site | Visit Site |
| OnDeck | StreetShares | Fundation | |
 |  |  | |
| Products Offered | • Lines of credit • Short-term loans | • Lines of credit • Installment loans • Contract financing | • Lines of credit • Installment loans |
| Best For | Small businesses looking for a line of credit or small business loan with a fast application process. | Small businesses looking for a lender with a variety of financial products, including lines of credit. | Established businesses with good credit looking for a line of credit or an installment loan. |
| Required Time in Business | 12 months | 12 months | 12 months |
| Required Revenue | $100,000 /year | $25,000 /year | $100,000 /year |
| Required Credit Score | 500 | 620 | 600 |
| Read Review | Read Review | Read Review | |
| Visit Site | Visit Site | Visit Site |
Table of Contents
Fundbox
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.
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| Borrower requirements: • No revenue or time in business requirements, but must use compatible accounting or invoicing software for at least 3 months, or a compatible business bank account for at least 6 months. • No specific credit score requirements. | |
| Visit the Fundbox website Read our Fundbox review | |
Fundbox currently offers the most accessible business lines of credit available. There is only one specific requirement: you must have been using compatible accounting/invoicing software for at least three months, or a compatible business bank account for six. While Fundbox does look at your credit, it does not require a specific score.
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.
Obviously, 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 small businesses looking for short-term working capital.
BlueVine
Founded in 2013, BlueVine offers two services to solve cash flow problems: lines of credit and invoice factoring. Check out the eligibility for their traditional lines of credit below:
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| Line of credit borrower requirements: • Must be in business at least 6 months with a revenue of $120,000 per year. • Must have a personal credit score of 600 or above. • Lines of credit are not available in all states. See full review for details. | |
| Visit the BlueVine website Read our BlueVine review | |
You have a fair chance at qualifying for a line of credit from BlueVine if you meet the above requirements. Borrowers might be eligible for a credit line up to $5,000,000 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.
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 with 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 between 15% and 78%, well-established businesses might be able to find lower rates elsewhere. However, smaller businesses will find this service worth considering.
Kabbage
Kabbage (read our review) 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. You might be eligible for a Kabbage line of credit if you meet the following requirements:
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| Borrower requirements: • Must be in business at least 12 months and make at least $50,000 annually (or $4,500 for the last 3 months). • No specific credit score requirements. | |
| Visit the Kabbage website Read our Kabbage review | |
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.
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.
Some merchants might also like that its 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% to 99%, Kabbage lines of credit have the potential to be the most expensive on this list. However, your personal 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.
OnDeck
OnDeck (read our review) is known for offering short-term loans, but it also offers business lines of credit. Because OnDeck will consider applicants that have personal credit scores as low as 500, it’s a good choice for businesses that don’t qualify for other credit lines because of poor credit.
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| Borrower requirements: • Must be in business at least 12 months with a revenue of $100,000 per year. • Must have a personal credit score of 500 or above. • Must not be in one of OnDeck’s restricted industries. | |
| Visit the OnDeck website Read our OnDeck review | |
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 like are repaid on a weekly basis. OnDeck does not charge a fee for drawing from your line, but it does charge a small monthly maintenance fee.
Although slower overall than Kabbage or Fundbox, OnDeck still has a fast application process. 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 rates and fees are competitive with similar lines of credit. So while you still might wind up with a rate that is higher than you would like, you will not come across fees that are overly expensive.
StreetShares is a small business lender that offers many financial products to small businesses, including lines of credit. This lender has very low revenue requirements, so if you have at least 12 months in business and fair credit, you might be able to qualify for a credit line.
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| Borrower requirements: • Must be in business at least 12 months with a revenue of $25,000 per year (sometimes StreetShares will make exceptions for high-earning businesses at least 6 months old). • Must have a personal credit score of 620 or above. | |
| Visit the StreetShares website Read our StreetShares review | |
Like those of many other lenders, StreetShares credit lines have a credit limit of $100,000, but the amount you will personally be offered will be about 20% of your annual revenue. StreetShares APRs range from 7% to 39.99%, which is competitive with many other online lines of credit. Draws 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 contract financing (a service similar to invoice factoring) and traditional term loans.
Fundation
Fundation is an online lender that offers lines of credit and term loans to eligible businesses. Here are the requirements you’ll have to meet to qualify for the former:
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| Borrower Requirements: • Must be in business at least 12 months with a revenue of $100,000 per year. • Must have a personal credit score of 600 or above. • Must have at least three full-time employees (including yourself). | |
| Visit the Fundation website Read our Fundation review | |
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 $100,000. 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% to 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 definitely 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.
Final Thoughts
Between these six options, most business owners will be able to find financing to suit their needs. All these lines of credit have relatively easy application processes 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 generally 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 extra 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 offered by business lines of credit. Check out our favorite business credit cards to learn about the cards that might be right for your business.
Bianca Crouse
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