Find the best business line of credit for your business.

A business line of credit is a flexible financing option you can draw from as needed. Interest is only charged on the amount of money you borrow.


LOAN AMOUNT

$1000-$250,000

TIME TO FUND

1-2 Days

LOAN TERMS

6-18 months

INTEREST RATE

8-60%

Best small business lines of credit.

Lendio carefully selects the lenders it works with, then works with you to find the best business line of credit for your unique situation.

Lender/funder*Loan/financing amountMin. time in businessLoan/financing termMin. credit scoreTime to funds (after approval)
BlueVineUp to $250,0002 years6 or 12 months650Same day
OnDeck$6,000-$100,0001 yearUp to 12 months600Same day
Idea Financial$10k-$250k3 years9-18 months650Same day
Headway Capital$5k-$100k1 year12 or 18 months615Same day
FundboxUp to $150,0006 months12 or 24 weeks650Same day

Line of credit lenders at a glance.

BlueVine – Line of credit

Interest rate

Starting at 6.2% (simple interest rate calculated over 26 weeks)

Funding amount

Up to $250,000

Term

6-12 months

Min. credit score

650

Time to funding

As fast as 24 hours after approval

The Bluevine Line of Credit offers up to $250,000 with access to your funds as fast as 24 hours after approval. 

Pros:
  • Best line of credit for speed-to-decision
  • Fast funding
  • Monthly or weekly payment options
Cons: 
  • Not available to businesses in Nevada, North Dakota, and South Dakota
  • Fees for drawing on your line of credit
  • Bank wire option $15 fee
  • 1.6%-3% draw fee

 

 

BlueVine – Line of credit

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Interest rate

Starting at 6.2% (simple interest rate calculated over 26 weeks)

Funding amount

Up to $250,000

Term

6-12 months

Min. credit score

650

Time to funding

As fast as 24 hours after approval

The Bluevine Line of Credit offers up to $250,000 with access to your funds as fast as 24 hours after approval. 

Pros:
  • Best line of credit for speed-to-decision
  • Fast funding
  • Monthly or weekly payment options
Cons: 
  • Not available to businesses in Nevada, North Dakota, and South Dakota
  • Fees for drawing on your line of credit

  • Bank wire option $15 fee
  • 1.6%-3% draw fee

 

 

Idea Financial – Line of credit

APR range

Daily interest rate minimum of 0.0658%

Funding amount

$10,000-$250,000

Term

Up to 18 months

Min. credit score

650

Time to funding

Same day

Idea Financial offers up to $250,000 with an 18-month term to business owners who have a minimum of two years in business under their belt and at least $15,000 in revenue each month. 

 

Pros:
  • Best line of credit for length of term offered
  • Quick approval and funding
Cons: 
  • Selective qualification requirements
  • Doesn’t lend to sole proprietors or nonprofits
  • Draw fee of 2.49%

 

 

Idea Financial Logo

Idea Financial – Line of credit

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APR range

Daily interest rate minimum of 0.0658%

Funding amount

$10,000-$250,000

Term

Up to 18 months

Min. credit score

650

Time to funding

Same day

Idea Financial offers up to $250,000 with an 18-month term to business owners who have a minimum of two years in business under their belt and at least $15,000 in revenue each month. 

 

Pros:
  • Best line of credit for length of term offered
  • Quick approval and funding
Cons: 
  • Selective qualification requirements
  • Doesn’t lend to sole proprietors or nonprofits

  • Draw fee of 2.49%

 

 

Headway Capital – Line of credit

APR range

Starting at 40% annually

Funding amount

$5,000-$100,000 (varies by state)

Term

12 or 18 months

Min. credit score

615

Time to funding

As fast as 24 hours after approval

Headway Capital can offer businesses up to $50,000 for an unsecured line of credit, and they can offer up to $100,000 for a secured line. Headway Capital is known for fast approval and funding times, plus flexible repayment terms. And you can apply even with modest annual revenue and just 1 year in business.

Pros:
  • Best line of credit for less qualified borrowers
  • Weekly or monthly repayment options 
  • Just 1-year minimum time in business required
Cons: 
  • Lower max loan amount
  • Draw fees may apply
  • Terms and fees vary depending on what state you operate out of
  • Minimum first draw amount
  • 2% draw fee in some states

 

 

Headway Capital Logo

Headway Capital – Line of credit

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APR range

Starting at 40% annually

Funding amount

$5,000-$100,000 (varies by state)

Term

12 or 18 months

Min. credit score

615

Time to funding

As fast as 24 hours after approval

Headway Capital can offer businesses up to $50,000 for an unsecured line of credit, and they can offer up to $100,000 for a secured line. Headway Capital is known for fast approval and funding times, plus flexible repayment terms. And you can apply even with modest annual revenue and just 1 year in business.

Pros:
  • Best line of credit for less qualified borrowers
  • Weekly or monthly repayment options 
  • Just 1-year minimum time in business required
Cons: 
  • Lower max loan amount
  • Draw fees may apply

  • Terms and fees vary depending on what state you operate out of
  • Minimum first draw amount
  • 2% draw fee in some states

 

 

Fundbox – Line of credit

APR range

Starting at 4.66% (12 weeks) and 8.99% (24 weeks)

Funding amount

Up to $150,000

Term

12-24 weeks

Min. credit score

650

Time to funding

As fast as 24 hours after approval

New businesses can get up to a $150,000 line of credit from Fundbox with only six months in business and a minimum credit score of 650.

Pros:
  • Best for newer businesses
  • Relatively low minimum credit score
  • Short time in business requirement
  • Two repayment term options
Cons: 
  • Limited maximum credit amount
  • Higher financing fees with longer repayment terms
  • No application fee
  • No prepayment fee

Fundbox – Line of credit

Read our review Apply now

APR range

Starting at 4.66% (12 weeks) and 8.99% (24 weeks)

Funding amount

Up to $150,000

Term

12-24 weeks

Min. credit score

650

Time to funding

As fast as 24 hours after approval

New businesses can get up to a $150,000 line of credit from Fundbox with only six months in business and a minimum credit score of 650.

Pros:
  • Best for newer businesses
  • Relatively low minimum credit score
  • Short time in business requirement
  • Two repayment term options
Cons: 
  • Limited maximum credit amount
  • Higher financing fees with longer repayment terms

  • No application fee
  • No prepayment fee

OnDeck – Line of credit

APR range

Start at 29.9% APR

Funding amount

$6,000-$100,000

Term

Up to 12 months

Min. credit score

600

Time to funding

As fast as 24 hours after approval

OnDeck Capital is another option for a line of credit, offering a maximum loan amount of $100,000 with a 600 credit score requirement. They require at least a year in business and also offer term loans.

Pros:
  • Best for businesses that need multiple options
  • Instant funding for draws once approved
  • Possibility to build credit with on-time payments
  • No prepayment penalty
Cons: 
  • Not available to businesses in Nevada, North Dakota, and South Dakota
  • One-year in business requirement not ideal for startups
  • No draw fee
  • Monthly maintenance fee

OnDeck – Line of credit

Read our review Apply now

APR range

Start at 29.9% APR

Funding amount

$6,000-$100,000

Term

Up to 12 months

Min. credit score

600

Time to funding

As fast as 24 hours after approval

OnDeck Capital is another option for a line of credit, offering a maximum loan amount of $100,000 with a 600 credit score requirement. They require at least a year in business and also offer term loans.

Pros:
  • Best for businesses that need multiple options
  • Instant funding for draws once approved
  • Possibility to build credit with on-time payments
  • No prepayment penalty
Cons: 
  • Not available to businesses in Nevada, North Dakota, and South Dakota
  • One-year in business requirement not ideal for startups

  • No draw fee
  • Monthly maintenance fee

What is a business line of credit?

A business line of credit is a flexible financing option for businesses. It allows business owners to have access to a predetermined amount of money, which they can draw from as needed. Unlike traditional loans where the borrower receives a lump sum upfront, with a line of credit, the borrower can use only the amount of money they need at any given time up to the credit limit.

And because a line of credit is revolving, you can use it as many times as you want. As soon as you repay what you’ve used, those funds become available to you again.

Check eligibility

Benefits of a small business credit line.

There are multiple benefits to a line of credit that make it ideal for businesses. 

Only pay interest on the funds you use.

With a business line of credit, you only pay interest on the amount of funds you use, not the entire credit line. For example, if you’re approved for a $40,000 business line of credit and you use $20,000 for office upgrades, you’ll just pay interest on that $20,000. This could save you a bundle in interest. Pretty cool, huh?

Multiple use cases.

Just like with a credit card, you can use a business credit line for just about anything. It’s good for businesses looking to expand and in need of a little cash to set up a new location, or for working capital. It can also be great to have on deck in the event you might need funds unexpectedly or to cover a dip in cash flow due to business seasonality.

Check eligibility

Minimum requirements for a business line of credit.

If your business doesn’t match some of the qualifiers below, receiving funding from our lending partners may be more challenging.

CREDIT SCORE

600 or higher

To qualify for a business line of credit, you’ll need a minimum credit score of 600 or higher. However, some lenders may require a higher credit score depending on their lending criteria.

ANNUAL REVENUE

at least $50K

Many lenders will require your business to have a minimum annual revenue of $50,000 or more. This shows that your business has a stable income and can handle the payments on the line of credit.

TIME IN BUSINESS

6 months or more

Most lenders will require your business to have been in operation for at least 6 months However, some may require a longer time in business depending on their lending criteria.

How much will a business line of credit cost?

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Take 15 minutes to find out what you qualify for from 75+ lenders.

How to get a small business line of credit.

1. Assess your needs.

Understand what you need the line of credit for, how much you need, and if you can afford to repay it. Having a clear picture of your cash flow needs is the first step.

2. Check your credit score.

Before you apply, make sure you know your credit score. Lenders will look at your credit score to determine your creditworthiness.

3. Prepare your documents.

Gather your business financial statements, tax returns, bank statements, and legal documents. These are typically required by lenders during the application process.

4. Research lenders

Compare different lenders to see who offers the best terms for a business line of credit. Look at the interest rates, repayment terms, and any potential fees. There are several types of lenders you can consider:

Traditional Banks: These are the most common lenders. They offer competitive interest rates but might have stringent requirements such as good credit scores and prolonged business history.

Online Lenders: These lenders typically have a faster application process and may have less strict requirements. However, they might also charge higher interest rates.

SBA Lines of credit:  The Small Business Administration offers lines of credit for small businesses through their partner lenders.

5. Apply

Once you’ve chosen a lender, you can apply for a line of credit. This usually involves filling out an application form and submitting your documents.

How does a line of credit work?

Once you receive approval for a line of credit and agree to the financier’s terms, the mechanics of a business line of credit are pretty easy to understand. You can use the funds from the line of credit for any business-related expenses—you can even withdraw them as cash to use for business purchases. If you don’t repay the financier for any funds used within a statement period, your account will accrue interest.

Generally, you don’t want to spend too close to your credit limit for too long—this situation sends a warning to your lender that your business might be struggling.

In some cases, a financier might require you to pay down your total balance and keep your balance at $0 for a while. This shows that your business can survive without using credit.

In other situations, especially in a bad economic environment, a financier might require you to pay back a line of credit all at once. Because of this, you shouldn’t make a line of credit the lifeblood of your company.

Business line of credit rates.

Interest rates for a business line of credit can range from 8% to 60%. If your credit score is higher, you can usually secure a rate on the lower end of this scale.

The way your interest rate is calculated will vary based on your credit line agreement. Some rates will be calculated daily, weekly, or monthly instead of annually. The rate will also go up or down depending on the term length. 

It is common for lines of credit to have annual fees, so read your agreement carefully.

Generally, you don’t want your balance to be too near your credit limit for too long, especially if you work in a riskier industry like restaurants, construction, or seasonal retail.

Research is always your friend when it comes to small business loans. You can use a line of credit calculator to understand exactly what a line of credit could provide for your company.

Funding and repayment process.

Lines of credit are more similar to a business credit card than a business loan because you don’t receive a lump disbursement at once. Instead, you pay for business expenses using the line of credit and repay the financier for only the funds used.

If you pay using a line of credit, interest accrues on any balance that is not paid down by the end of each statement period. Like a credit card, as you pay down the balance, the amount of credit available to you increases.

Limits on a business line of credit are set by a lender. Lines of credit are typically renewed over time, assuming the borrower’s creditworthiness remains in good standing. Usually, once you agree to a line of credit, it will remain open until you opt to close it.

Secured vs. unsecured line of credit.

Lines of credit come in two main forms – secured and unsecured.

Secured line of credit

Collateral required

Less strict application requirements

Lower interest rates

Higher funding amount

Unsecured line of credit

No collateral required

More strict application requirements

Higher interest rates

Lower funding amount

1. Tell us about your business.

Answer a few simple questions and complete the application in minutes.

2. Submit your application.

We’ll put your application in front of 75+ lenders. Applying is free and won’t impact your credit score.

3. Compare offers.

Find the funding option with the terms that best fit your small business goals.

4. Get funded.

Once you accept, funding can hit your bank account in as little as 24 hours.

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small business.


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Sterling Hannemann
Co-Owner of Seven Brothers

“Lendio literally saved my business.”

Chloria Chandler
Owner of Bobbee O’s BBQ

Line of credit FAQs.

To qualify for a business line of credit you will need to have a credit score of 600 or higher and have a proven track record of generating revenue. Newer businesses can look at line of credit options for startups.

You can obtain a business line of credit without needing collateral. This type of credit is called an unsecured line of credit, and it does not require you to put up any collateral. However, it can be more expensive due to higher interest rates. Lenders take on a greater risk when lending unsecured funds, which is why they charge higher rates of interest.

A small business loan is a lump sum of money that is given to the borrower upfront and repaid over time with interest. It is ideal for one-time investments or larger expenses. A line of credit, on the other hand, allows the borrower to access a predetermined amount of funds as needed and only pay interest on the amount used. It’s better suited for recurring or ongoing expenses. Learn more about business loans vs. lines of credit.

A line of credit and a credit card both offer access to funds as needed, but there are some key differences. A line of credit typically has higher limits, longer repayment terms, and may have lower interest rates compared to a credit card. It also requires an application process and may require collateral. On the other hand, a credit card is usually easier to obtain and can be used for smaller, everyday purchases.

Lendio’s methodology

Wondering how we chose the best? We used the following criteria to evaluate the lenders in our network.

  • Time to fund
  • Minimum and maximum loan amounts
  • Lenders with fees comparable to other similar lenders
  • Requirements: Credit score, revenue, and time in business requirements
  • Flexible repayment options
  • External website reviews.

*The information contained in this page is Lendio’s opinion based on Lendio’s research, methodology, evaluation, and other factors. The information provided is accurate at the time of the initial publishing of the page (September 1, 2022). While Lendio strives to maintain this information to ensure that it is up to date, this information may be different than what you see in other contexts, including when visiting the financial information, a different service provider, or a specific product’s site. All information provided in this page is presented to you without warranty. When evaluating offers, please review the financial institution’s terms and conditions, relevant policies, contractual agreements and other applicable information. Please note that the ranges provided here are not pre-qualified offers and may be greater or less than the ranges provided based on information contained in your business financing application. Lendio may receive compensation from the financial institutions evaluated on this page in the event that you receive business financing through that financial institution.

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