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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
  • Last updated onUpdated

  • Chris Motola
  • REVIEWED BY

    Chris Motola

    Senior Staff Writer

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 lines of credit offer flexible funding on-demand without going through a lengthy application process every time funds are needed. Businesses that want flexible funding for nearly any business purpose should start their search with our list of the best business lines of credit.

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. Keep reading to learn more about the best business lines of credit.

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  • Borrowing Limit: $500K
  • FICO: 560+
  • APR: 8%+
  • Borrowing Limit: $500K
  • FICO: 560+
  • APR: 8%+

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  • Borrowing Limit: $100K
  • FICO: 625+
  • APR: 29.9%+
  • Borrowing Limit: $100K
  • FICO: 625+
  • APR: 29.9%+

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  • Borrowing Limit: $5M
  • FICO: 600+
  • APR: 5%+
  • Borrowing Limit: $5M
  • FICO: 600+
  • APR: 5%+

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  • Borrowing Limit: $150K
  • FICO: 600+
  • APR: 4.66%+
  • Borrowing Limit: $150K
  • FICO: 600+
  • APR: 4.66%+

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  • Borrowing Limit: $250K
  • FICO: 625+
  • APR: 15%+
  • Borrowing Limit: $250K
  • FICO: 625+
  • APR: 15%+

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  • Borrowing Limit: $3M
  • FICO: Undisclosed
  • APR: Based On Prime Rate
  • Borrowing Limit: $3M
  • FICO: Undisclosed
  • APR: Based On Prime Rate

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Table of Contents

The 6 Best Business Line Of Credit Options

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 picks for the best lines of credit, including Lendio, OnDeck, Bluevine, and more.

Lendio: Best Marketplace For Business Lines Of Credit

Lendio


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Pros

  • Long-term financing options available
  • Applicants can quickly be prequalified
  • High credit limits
  • The application process is fast and easy

Cons

  • Rates can be expensive
  • Funds can take a while to disburse

Why We Chose Lendio For Best Business Lines Of Credit

Lendio isn’t a direct lender. Instead, it’s a loan marketplace that connects small business owners with funding through its 75 lending partners. Because Lendio works with multiple lenders, it may be possible for businesses to qualify for a line of credit that couldn’t find funding elsewhere. This means that borrowers with credit challenges, newer businesses, and other businesses that face barriers to funding may find what they need through Lendio’s lending network.

With just one application, you can receive multiple offers to compare. In addition to lines of credit, Lendio’s network also provides access to short- and long-term funding options, from merchant cash advances to SBA loans.

Lendio Services

Lendio’s network of lenders offers business lines from $1,000 to $500,000. Repayment terms are up to two years.

In addition to lines of credit, you may also apply for other funding including:

  • SBA loans
  • Short-term loans
  • Equipment financing
  • Merchant cash advances
  • Commercial mortgages
  • Business credit cards

Lendio Rates & Fees

Lendio’s rates and fees vary by lender. Rates generally range from 8% to 24%, with repayment terms of one or two years. It may take up to two weeks to receive funding.

Additional fees vary by lender.

Lendio Eligibility Requirements

To qualify for a line of credit, you must meet the following minimum requirements:

  • Minimum credit score of 560
  • Annual revenue of at least $50,000
  • At least six months in business

Get Started With Lendio

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OnDeck: Best For Building Business Credit

Total Rating 3.9
Rates & Fees4.6

Services2.9

Eligibility Requirements3.8

Application4.5

Sales & Advertising Transparency3.8

Customer Service4.1

User Reviews4.0



Pros

  • Borrower qualifications are lower than traditional banks
  • 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

Why We Chose OnDeck For Best Business Lines Of Credit

OnDeck has pretty lenient requirements for its lines of credit, making it an option for borrowers that may not qualify for funding through a bank. Businesses without a business credit score can also use this line of credit to get started, as OnDeck reports to business credit bureaus.

OnDeck offers fast funding that’s available 24/7, even on weekends and holidays. There are no draw fees, the application process takes just a few minutes, and once approved, you can begin initiating draws against your line of credit immediately.

OnDeck Services

OnDeck offers revolving lines of credit from $6,000 to $100,000.

Term loans of $5,000 to $250,000 are also available to businesses that need additional capital or longer repayment terms.

OnDeck Rates & Fees

OnDeck’s rates for its lines of credit start 29.9% to 69.9%. The lender states that the average APR for its lines of credit is 52.6%. Payments are made weekly and repayment terms are 12 months.

There are no origination or draw fees. However, most borrowers will be required to pay a maintenance fee of $20/month.

OnDeck Eligibility Requirements

To qualify for a line of credit through OnDeck, you must meet these minimum requirements:

  • Minimum credit score of 625
  • At least $100,000 in annual revenue
  • At least one year in business
  • Must have a business checking account

OnDeck does not loan to businesses in Nevada, North Dakota, or South Dakota. The lender also has a list of prohibited industries, including but not limited to marijuana dispensaries, adult entertainment businesses, firearm dealers, and gambling.

Get Started With OnDeck

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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
  • Short- and long-term payment options
  • The application process is fast and easy

Cons

  • Rates can be expensive
  • May require collateral/blanket lien

Why We Chose National Business Capital For Best Business Lines Of Credit

Similar to Lendio, National Business Capital is a loan aggregator that makes it easy for all types and sizes of businesses to find the funding they need. Through this service, you can connect with numerous lenders that offer business lines of credit.

With lines up to $5 million, National Business Capital is ideal for businesses that need larger amounts of capital. Funding is quick, with many businesses getting funded in 24 to 48 hours. Interest rates are competitive, although newer businesses, borrowers with lower credit scores, businesses with a lack of collateral, and businesses with lower annual revenues may receive rates as high as 60%.

National Business Capital Services

National Business Capital provides eligible businesses with lines of credit from $25,000 to $5 million.

With its network of 75 lenders, National Business Capital can also connect you to other types of funding including:

  • Term loans
  • SBA loans
  • Equipment financing
  • Asset-based financing

National Business Capital Rates & Fees

Since National Business Capital is a loan aggregator, rates and fees vary based on a number of factors, including the lender you work with, as well as personal credit score and annual revenue. Rates range from 5% to 60%. Payment terms and additional fees vary by lender.

National Business Capital Eligibility Requirements

To receive a line of credit from National Business Capital, you must meet the following minimum requirements:

  • Minimum credit score of 600
  • Annual revenue of $120,000
  • Time in business of 12 months

Get Started With National Business Capital

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Fundbox: Best Business Line of Credit For Startups

Total Rating 3.8
Rates & Fees3.1

Services3.6

Eligibility Requirements4.5

Application4.8

Sales & Advertising Transparency3.8

Customer Service3.0

User Reviews4.4



Pros

  • The application process is fast and easy
  • Low personal credit score requirements
  • Fast approvals

Cons

  • Rates can be expensive
  • Repayments are required frequently

Why We Chose Fundbox For Best Business Lines Of Credit

Fundbox is a great choice for businesses that want fast funding, as lines of credit can be approved in less than five minutes. Once approved, you can have money in your account as quickly as the next business day.

Fundbox is particularly a great choice for startups and business owners with lower credit scores, as eligibility requirements are far lower than bank requirements. While it does have shorter repayment terms and a weekly payment schedule, Fundbox is a solid choice for businesses that need fast access to up to $150,000 and don’t meet the requirements of traditional lenders.

Fundbox Services

Fundbox specializes in revolving lines of credit up to $150,000.

Fundbox Rates & Fees

Fundbox’s rates start at 4.66% for 12-week terms and 8.99% for 24-week terms. There are no draw fees or other fees.

Fundbox Eligibility Requirements

To qualify for a Fundbox line of credit, you must meet these minimum requirements:

  • Minimum credit score of 600
  • At least $100,000 in annual revenue
  • At least 6 months in business
  • Must own a business checking account

Get Started With Fundbox

Read our in-depth review

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Bluevine: Best For Fast Funding

Bluevine


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Pros

  • Low personal credit score requirements
  • The application process is fast and easy
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • High annual revenue requirements

Why We Chose Bluevine For Best Business Lines Of Credit

If you need fast funding, look no further than Bluevine. The Bluevine line of credit application process takes just minutes, and you can be approved instantly. Once approved, you can begin making draws immediately and receive funds in your account in a matter of hours (for an additional fee).

Bluevine has less stringent requirements than traditional lenders, providing lines of credit to business owners with scores as low as 625. However, it does have high monthly revenue requirements, and funding is only available to businesses that have been in operation for at least two years. Still, businesses that meet these requirements will appreciate the easy application process, fast funding, and competitive fixed rates.

Bluevine Services

Bluevine offers business lines of credit up to $250,000.

Bluevine Rates & Fees

Bluevine charges a fee of 0.3% to 1.5% per week for lines of credit with terms of six months. The lender charges 1.5% to 6.5% per month for lines of credit with 12-month terms. The APR works out to about 15% to 78% for these lines of credit.

A draw fee of 1.6% to 2.5% is charged. If you want to receive your funds in hours (instead of 1-3 business days), you’ll pay a $15 expedited deposit fee.

Bluevine Eligibility Requirements

To qualify for a Bluevine line of credit, you must have a corporation or LLC that is in good standing with your Secretary of State. You must also meet these basic requirements:

  • Minimum personal credit score of 625
  • Monthly revenue of at least $40,000
  • Time in business of at least 24 months
  • No bankruptcies for the last three years

Businesses incorporated or operating in Nevada, North Dakota, or South Dakota are ineligible for funding.

Businesses in certain industries, including firearms, controlled substances, and pornography, are also ineligible for Bluevine’s lines of credit.

Get Started With Bluevine

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PNC Bank: Best For Longer Repayment Terms

PNC Bank Small Business Loans


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Pros

  • Low interest rates
  • High borrowing amounts
  • Long repayment terms

Cons

  • Stringent borrower requirements
  • Not available in some states

Why We Chose PNC Bank For Best Business Lines Of Credit

The other lenders on this list are alternative lenders that specialize in fast funding and lower borrowing requirements. However, 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. One such bank is PNC Bank.

PNC Bank offers secured and unsecured business lines of credit that come with competitive interest rates. If approved, you’ll have a seven-year revolving credit period, making it a great long-term “rainy day” fund.

PNC Bank Services

PNC Bank provides two business lines of credit:

  • Unsecured lines of credit of $20,000 to $100,000
  • Secured lines of credit of $100,001 to $3 million

PNC Bank also offers a range of small business lending services, including:

  • Term loans
  • SBA loans
  • Commercial vehicle loans
  • Commercial real estate loans
  • Business credit cards

PNC Bank Rates & Fees

PNC Bank’s rates are variable and are based on the Prime Rate. Repayments are made monthly. For unsecured lines of credit, payments are 1.5% of the balance. Monthly interest-only payments are made for secured lines of credit, although the principal can be paid at any time.

Unsecured lines of credit have an annual fee of $175. Secured lines have an annual fee of 0.25% of the committed line amount.

Secured lines of credit require collateral in the form of non-real estate business assets.

PNC Bank Eligibility Requirements

PNC Bank does not list specific eligibility requirements. However, it does give an idea of the specific factors it looks for when evaluating applications for loans. This includes:

  • A clean personal credit history for the last five years with no recent 30-day late payments
  • A good business credit history
  • No evidence of collections, charge-offs, bankruptcies, foreclosures, lawsuits, judgments, or unsatisfied tax liens
  • Minimum of three years in business, although options may be available for newer businesses
  • A solid debt-to-income ratio
  • No late or charged-off payments for prior PNC loans
  • Little or no overdraft history for PNC checking accounts

Get Started With PNC Bank Small Business Loans

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Business Loan & Funding Products Review Methodology

Merchant Maverick has been researching and reviewing business lenders since 2015. Our writers have tested over a hundred different funding products, including traditional term loans, online loans, lines of credit, start-up loans, merchant cash advances, and equipment financing. In each review, we evaluate rates and fees, services, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business loans and funding products.

When comparing different lenders and loan products, we consider many data points, including the ease and transparency of the application process, interest rates, repayment structure, sales ethics, time to funding, revenue and time in business qualifications, and credit score requirements. Our lists of the best funding products include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, low rates, flexible requirements, and competitive borrowing amounts.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the loans and funding products included meet our internal standards for quality and reputation.


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)

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.

What Is The Best Line Of Credit For Your Business?

When searching for the best line of credit for your business, make sure to keep cost, repayment terms and frequency, borrower requirements, and the reputation of the lender in mind before you make your choice.

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.

One last thing to note is that many banks and credit unions offer 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 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. Once you’ve determined you meet these requirements and begin shopping around, 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 lines of credit for bad credit, but it’s more difficult.

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Erica Seppala

Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick
Erica began writing on small business topics in 2008. She joined Merchant Maverick in 2018 and focuses on loans, accounting, and POS. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll. She has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a graduate of Limestone University and resides in Greenville, South Carolina.
Erica Seppala
View Erica Seppala's professional experience on LinkedIn.

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