Best Business Lines of Credit for 2024

A closer look at our top business lines of credit

If you’re looking for a large business loan, you might consider the SBA CAPLines program. These lines of credit are available up to $5 million. In fact, nearly 70% of CAPLines issued in fiscal year 2024 had funding amounts of greater than $500,000^[0]

With Bluevine, you can submit a simple line of credit application online and receive a decision in as little as five minutes. Once you’re approved and you make a draw on your credit line, you can get your funds in as fast as 24 hours — or even quicker if you pay for a wire transfer or have a Bluevine business checking account.

Headway Capital offers a fast and flexible business line of credit in amounts up to $100000. To qualify, you only need a minimum of 6 months in operation — making it a good option for startups. Startups can use this line of credit to cover ongoing working capital needs as they establish and grow their businesses. This credit line can also be a worthwhile option for low-revenue companies, as you only need a minimum annual revenue of $50000 to qualify.

Backd can be a good line of credit option for borrowers with lower credit scores. The lender accepts a minimum credit score of 600, the lowest requirement on our list. Backd business lines of credit are available in amounts up to $750000 with repayment terms of 6 or 12 months. You can get approved in as little as 24 hours and funds will be deposited in your account within 24 to 48 hours.

OnDeck offers business lines of credit of up to $100000 with repayment terms of 12, 18 or 24 months. The lender doesn’t ask you to pledge any physical collateral nor does it take out a UCC lien on your business assets. OnDeck can be a good option if you don’t have sufficient assets to use to secure financing — or if you don’t want to put your business assets at risk.

Bank of America offers a secured line of credit backed by a cash deposit. The minimum deposit requirement is $1000. You can use your credit line for working capital and operational expenses. By making regular payments on your line of credit, you can establish a positive account history and build business credit. Responsible credit use can also help you transition into an unsecured line of credit.

Wells Fargo offers a revolving business line of credit with the lowest starting interest rates of any option on our list. Credit lines are available up to $150000 with no collateral required. Wells Fargo also waives the annual fee for any new customers for the first year. To qualify, however, you’ll need to be an established business with good credit.

What is a business line of credit?

A business line of credit allows you to borrow up to a certain limit and only pay interest on the money you borrow — similar to the way a credit card works. You then repay the funds over time, typically on a weekly or monthly schedule.

As you repay what you’ve borrowed, you can continue to draw on the line — provided your payments are on time and you don’t exceed your credit limit.

Types of business lines of credit

There are two types of business lines of credit: secured and unsecured.

Minimum requirements for a business line of credit

Pros and cons of business lines of credit

» MORE: Compare the best working capital lines of credit

How to compare business lines of credit

When trying to choose the best business line of credit for your needs, you’ll want to compare factors such as:

• Maximum funding amount. If you think you need a large credit limit, bank or SBA lenders may be a better option. Keep in mind that many banks also offer commercial lines of credit, which are designed to meet the needs of mid-size, high-revenue businesses. 

• Repayment schedule. Business lines of credit may require daily, weekly or monthly repayment. Consider your budget and cash flow to determine the type of repayment you can afford. 

• Interest rates. Current business line of credit rates can range from 10% to 99% APR. In general, the stronger your credentials, the lower interest rates you’ll receive. Banks tend to offer more competitive business line of credit rates compared with online lenders. As you compare interest rates, consider whether a lender offers fixed or variable rates. A business line of credit calculator can help you estimate potential total costs.

• Additional fees. Origination, draw and account maintenance fees can increase the overall cost of your business line of credit. You should make sure you understand any additional fees a lender charges and ask questions if the fees are unclear. You’ll also want to determine if the lender charges prepayment penalties for repaying early.

• Funding speed. If you need business capital quickly, you may be able to get it from an online lender in just a few days. Although traditional lenders may take anywhere from days to weeks to provide funding, you’ll likely get a lower interest rate with these options.

• Lender reputation. Reading online reviews or talking to other business owners can help you get a sense of what it may be like to work with a particular lender. Although there are many reputable online lenders, be wary of any company that offers “guaranteed approval” or makes similar promises that seem too good to be true.

Where to get a business line of credit

Banks and credit unions

Banks and credit unions typically offer the most competitive rates and terms on a business line of credit. To qualify, however, you’ll usually need to meet strict eligibility requirements, such as strong revenue, good credit and several years in business.

Compared to online lenders, banks and credit unions can also be more likely to require physical collateral to secure your credit line (especially for larger limits), as well as more likely to charge additional fees, such as annual or inactivity fees.

SBA lenders

Some banks and credit unions also offer SBA CAPLines of credit. These SBA lines of credit are part of the 7(a) program, offering funding up to $5 million. There are four different credit line options based on your industry and financing needs.

Although you’ll still need to meet strong qualifications to get an SBA line of credit, these products may be slightly easier to access than traditional bank credit lines. Like business bank loans, however, these SBA lines of credit require a detailed application process and will likely be slow to fund.

Online lenders

Online lenders are a good option for startup business lines of credit or bad credit borrowers as they generally have more flexible business line of credit requirements compared with banks and credit unions.

Online lenders typically have streamlined application processes and fewer fees, and may be able to issue small-business lines of credit in a matter of days. However, these lenders are also likely to charge higher interest rates than banks and may have lower credit limits.

How we chose the best business lines of credit

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer small-business friendly features, including:

• Transparency of rates and terms.

• Flexible payment options.

• Fast funding times.

• Accessible customer service.

• Reporting of payments to business credit bureaus.

• Responsible lending practices.

We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.