Access funds when you need them with a business line of credit.

The safety net you need, the flexibility you want.

Applying is free and won’t impact your credit.


LOAN AMOUNT

$1000-$250,000

TIME TO FUND

1-2 Days

LOAN TERMS

6-18 months

INTEREST RATE

8-60%

Want flexible financing? Then you want a business line of credit.

Think of a line of credit as a financial safety net for your business. It’s there if you need it, but you’re under no obligation to use it. And when you do tap into it, you can use it to cover almost any small business need. Plus, you only pay interest on the funds you use, not the full amount. In other words, it’s as flexible as a double-jointed yoga teacher.

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Benefits of a 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

One of the coolest things about a business line of credit is that you only pay interest on the funds you use, not the full amount. 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 to buy inventory. It can also be great to have on deck in the event you might need funds unexpectedly. Or it can be good if you expect to experience cash flow issues due to an off-season or something of the like. 

Check Eligibility

Minimum requirements for a business line of credit.

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

CREDIT SCORE

600 or higher

ANNUAL REVENUE

at least $50K

TIME IN BUSINESS

6 months or more


Not qualified yet? We can help.

Lendio’s mobile app can help get your business ready for financing. Open a business bank account, get cash flow insights and stay connected to get updated when you have offers available.

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Projections for what to charge your customers, when to hire employees and upcoming expenses.

Secured vs. unsecured line of credit.

When considering a line of credit for businesses, you may find that you have to decide between secured and unsecured lines. Knowing the difference is important to be able to make this decision. 

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

Best 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*Best Loan/Financing TypeLoan/FInancing AmountMin. Time in BusinessLoan/Financing TermMin. Credit ScoreTime to Funds
(After Approval)
BlueVineLine of CreditUp to $250,0002 years6 or 12 months650Same day
OnDeckLine of Credit$6,000-$100,0001 yearUp to 12 months600Same day
Idea FinancialLine of Credit$10k-$250k3 years9-18 months650Same day
Headway CapitalLine of Credit$5k-$100k1 year12 or 18 months615Same day
FundboxLine of CreditUp to $150,0006 months12 or 24 weeks650Same day

The best business line of credit options in one marketplace.

Continue reading for detailed information about the lenders listed above.
Ready to apply for a loan? Lendio works with 75+ lenders to find the right option for your business. Click “Apply Now” to fill out our simple application.

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 is ideal because your approval is revolving and, as you pay down what you’ve drawn, you’re able to access those funds repeatedly. This means you could have the funds you need to really get your business started. 

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 is ideal because your approval is revolving and, as you pay down what you’ve drawn, you’re able to access those funds repeatedly. This means you could have the funds you need to really get your business started. 

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

Another option you have for a line of credit is Idea Financial. This financer requires that business owners looking for financing have a minimum of two years in business under their belt and at least $15,000 in revenue each month. They also will not lend to sole-proprietors or non-profits, so those business entities in those categories must look elsewhere for their financing.

 

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

Another option you have for a line of credit is Idea Financial. This financer requires that business owners looking for financing have a minimum of two years in business under their belt and at least $15,000 in revenue each month. They also will not lend to sole-proprietors or non-profits, so those business entities in those categories must look elsewhere for their financing.

 

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

For an unsecured line of credit, Headway Capital can offer businesses up to $50,000, 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

For an unsecured line of credit, Headway Capital can offer businesses up to $50,000, 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 looking for a line of credit can consider Fundbox and get up to $150,000. The company is startup-friendly as it only requires six months in business and a minimum credit score of 650. But the repayment terms are short and require weekly payments, so it’s only for businesses that can manage such a financing option.

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 looking for a line of credit can consider Fundbox and get up to $150,000. The company is startup-friendly as it only requires six months in business and a minimum credit score of 650. But the repayment terms are short and require weekly payments, so it’s only for businesses that can manage such a financing option.

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

Another option you have when it comes to a line of credit is OnDeck. While the maximum loan amount available with OnDeck is only $100,000, they require a credit score of only 600. However, they do ask for a year in business. So, while they’re a bit more accessible to some businesses, this could make OnDeck less accessible for others. They also offer term loans for businesses that are looking for larger, longer-term, non-revolving types of funding.

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

Another option you have when it comes to a line of credit is OnDeck. While the maximum loan amount available with OnDeck is only $100,000, they require a credit score of only 600. However, they do ask for a year in business. So, while they’re a bit more accessible to some businesses, this could make OnDeck less accessible for others. They also offer term loans for businesses that are looking for larger, longer-term, non-revolving types of funding.

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

How to apply for a business line of credit.

Sure, you can go the bank route with a long application process and 75% rejection rate. But if you’re looking for financing in this lifetime, Lendio offers a faster, easier application process.

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

We pair you with loan options from our network of 75+ lenders. Our dedicated funding managers can help you weigh the pros and cons of each option.

STEP
3
Get funded.

Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Apply Now

Why use Lendio?

$12+ BILLION

funded through us

75+

lenders in our network

300,000+

loans funded

“The Lendio process was amazing”

Sterling Hannemann
Co-Owner of Seven Brothers

“Lendio literally saved my business.”

Chloria Chandler
Owner of Bobbee O’s BBQ

Line of credit FAQs

A business line of credit is a financing tool for businesses that allows them access to money as expenses arise. It’s also one of the most flexible forms of financing.  You can use it for buying equipment, hiring staff, increasing inventory, adding a second location, paying invoices, installing a cappuccino machine, and more.

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.

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 back 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.

If you’re interested in getting a line of credit for your business, you can fill out our easy online application and see your options in as little as 15 minutes. You’ll then see the lenders that might provide a line of credit and the other details of what you qualify for. 

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 don’t need collateral for a business line of credit. You could get an unsecured line of credit that does not require collateral. But it could cost you more. With unsecured lines of credit, the interest rates can be higher because lenders are taking a larger risk in lending to you. 

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 period of time. 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.

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.

Remember, these interest rates only apply to balances that carry over from repayment period to repayment period. You’ll pay the least amount of interest if you can pay down your balance as quickly as possible.

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 financing. You can use line of credit calculator to understand exactly what a line of credit could provide for your company.

Lines of credit work differently than small business loans. After applying for a line of credit, you could have funds in one to two weeks if you’re approved. You could get up to $500,000 in funding, which you could then pull on when necessary. It’s there if you need the funds, and if you don’t, it’s nice to know you have it just in case. A huge benefit of a business credit line is that you then only pay interest on and have to repay the money you actually use from your line of credit. To repay you would usually make monthly payments on the amount you’ve borrowed. The term for a line of credit is usually one to two years. 

Our methodology

Wondering how we chose the best? Here’s how we went about evaluating the lenders in our network.

  • Lenders with fast funding time (i.e., those with non-SBA loans that fund in under one week and SBA funding that funds in 2-3 weeks)
  • Lenders with a maximum loan amount of $2 million or less
  • Lenders with a minimum loan amount of $5,000
  • Lenders with fees that are comparable to other similar lenders (Ex:online lenders that have similar fees and traditional lenders with similar fees)
  • Requirements:
    • More flexible lenders:
      • Credit Score: 600
      • Time in Business: 6 months
      • $8,000-$10,000 gross monthly revenue
    • Average lender:
      • Credit Score: 700
      • Time in Business: 1-2 years
      • $20,000-$50,000 gross monthly revenue
  • Flexible repayment options (i.e., early repayment options with daily, weekly, and monthly payment options)
  • Reviews on external websites (an average of 4.5 or higher on TrustPilot)

*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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