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Best Business Lines of Credit of June 2024

A business line of credit offers flexibility, allowing you to borrow up to a certain limit and only pay interest on the money you borrow.

Fundera by NerdWallet
By Randa Kriss
Last updated on June 14, 2024
Edited bySally Lauckner
Fact checked and reviewed
Business lines of credit can be used for a variety of short-term needs, such as managing cash flow, buying inventory or covering payroll.

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LenderBest forMax loan amountMin. credit scoreAPR rangeMax term length
Bank of America
5.0/5.0  
Bank business lines of creditSee review700See reviewSee review
U.S. Small Business Administration
SBA lines of credit$5,000,00065011.50-15.00%10 years
OnDeck
5.0/5.0  
Easy business lines of credit$100,00062535.90-84.90%2 years
Headway Capital
5.0/5.0  
Startups$100,00062535.00-80.00%See review
Bluevine
5.0/5.0  
Fast funding$250,00062520.00-50.00%1 year
Chase
Secured business lines of credit$500,000700See reviewSee review
Wells Fargo
5.0/5.0  
Unsecured business lines of credit$150,00068010.25-18.25%See review
Fundbox
5.0/5.0  
Bad credit$150,00060036.00-99.00%6 months
American Express Business Blueprint™
5.0/5.0  
American Express customers$250,000660See review2 years

Best for Bank business lines of credit

Bank of America

Min. Credit Score

700

Best for SBA lines of credit

U.S. Small Business Administration

Max Loan

$5,000,000

Min. Credit Score

650

APR Range

11.50-15.00%

Max Term Length

10 years

Best for Easy business lines of credit

OnDeck

Max Loan

$100,000

Min. Credit Score

625

APR Range

35.90-84.90%

Max Term Length

2 years

Best for Startups

Headway Capital

Max Loan

$100,000

Min. Credit Score

625

APR Range

35.00-80.00%

Best for Fast funding

Bluevine

Max Loan

$250,000

Min. Credit Score

625

APR Range

20.00-50.00%

Max Term Length

1 year

Best for Secured business lines of credit

Chase

Max Loan

$500,000

Min. Credit Score

700

Best for Unsecured business lines of credit

Wells Fargo

Max Loan

$150,000

Min. Credit Score

680

APR Range

10.25-18.25%

Best for Bad credit

Fundbox

Max Loan

$150,000

Min. Credit Score

600

APR Range

36.00-99.00%

Max Term Length

6 months

Best for American Express customers

American Express Business Blueprint™

Max Loan

$250,000

Min. Credit Score

660

Max Term Length

2 years

Best for

Bank business lines of credit

Bank of America offers business lines of credit in amounts of $10,000 or more that are well-suited for borrowers with strong credit.

Bank of America Business Advantage Unsecured Line of Credit

Max Loan Amount
Undisclosed
Min. credit score
700
Established businesses with strong credit can access this revolving line of credit, no collateral required.

Max loan

Undisclosed

Min. Credit score

700

Established businesses with strong credit can access this revolving line of credit, no collateral required.

Best for

SBA lines of credit

The SBA CAPLines program offers four credit line options that can be used for a variety of business purposes.

SBA CAPLines of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
11.50-15.00%
The SBA CAPLines program offers four lines of credit that can help businesses meet short-term and cyclical working capital needs. These credit lines have competitive interest rates and repayment terms.

Max loan

$5,000,000

Min. Credit score

650

Apr range

11.50-15.00%

The SBA CAPLines program offers four lines of credit that can help businesses meet short-term and cyclical working capital needs. These credit lines have competitive interest rates and repayment terms.
Read Review

with Fundera by NerdWallet

Best for

Easy business lines of credit

OnDeck offers business lines of credit of up to $100,000 with a streamlined application process and fast funding times.

OnDeck - Line of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%
OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.
May fund quickly

Max loan

$100,000

Min. Credit score

625

Apr range

35.90-84.90%

OnDeck offers a fast line of credit for small-business owners with less-than-stellar credit who need to manage cash flow or buy inventory.
Read Review

with Fundera by NerdWallet

Best for

Startups

Headway Capital offers fast funding up to $100,000 for borrowers with at least six months in business.

Headway Capital - Line of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%
Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.

Max loan

$100,000

Min. Credit score

625

Apr range

35.00-80.00%

Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.
Read Review

with Fundera by NerdWallet

Best for

Fast funding

Bluevine offers a business line of credit of up to $250,000 and can fund applications in as little as 24 hours.

Bluevine - Line of credit

Read Review

with Fundera by NerdWallet

Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
Bluevine's line of credit provides fast working capital for short-term borrowing needs.
May fund quickly

Max loan

$250,000

Min. Credit score

625

Apr range

20.00-50.00%

Bluevine's line of credit provides fast working capital for short-term borrowing needs.
Read Review

with Fundera by NerdWallet

Best for

Secured business lines of credit

Chase’s business line of credit offers up to $500,000 with a five-year revolving term. You will need to provide collateral to secure your credit line.

Chase - Business line of credit

Max Loan Amount
$500,000
Min. credit score
700
Chase offers a revolving credit line that allows you to withdraw funds as needed, but you’ll typically need strong credit and at least two years in business.

Max loan

$500,000

Min. Credit score

700

Chase offers a revolving credit line that allows you to withdraw funds as needed, but you’ll typically need strong credit and at least two years in business.

Best for

Unsecured business lines of credit

Wells Fargo offers business lines of credit of up to $150,000 and doesn’t require physical collateral. Borrowers will be required to sign a personal guarantee, however.

Wells Fargo BusinessLine® Line of Credit

Max Loan Amount
$150,000
Min. credit score
680
Est. APR
10.25-18.25%
This Wells Fargo line of credit offers competitive rates for businesses with at least two years in operation.

Max loan

$150,000

Min. Credit score

680

Apr range

10.25-18.25%

This Wells Fargo line of credit offers competitive rates for businesses with at least two years in operation.

Best for

Bad credit

Fundbox offers quick funding of up to $150,000 for borrowers with a credit score of 600 or higher.

Fundbox - Line of credit

Max Loan Amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
May fund quickly

Max loan

$150,000

Min. Credit score

600

Apr range

36.00-99.00%

Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.

Best for

American Express customers

Existing American Express customers can use their accounts to find out if they prequalify for this business line of credit.

American Express® Business Line of Credit

Max Loan Amount
$250,000
Min. credit score
660
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

Max loan

$250,000

Min. Credit score

660

The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.

How to choose the right business line 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 — but will require you to meet strict qualifications. 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. Bank and SBA lines of credit will likely offer the best business line of credit rates, ranging from 10% to 19%. Online lenders may have higher rates, but will fund more quickly, with flexible qualification requirements. Also consider whether a lender offers fixed or variable rates.
  • 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.

Loan calculator icon

Business line of credit calculator

When you draw from a business line of credit, you only pay interest on the funds that you borrow. You then repay the funds over time, based on a schedule set by your lender.

Enter a withdrawal amount, repayment term and annual interest rate to estimate your monthly payment, total interest costs and the total amount repaid.

Not sure? See estimated rates on online business loans and SBA loans.
Monthly payment
$0.00
Total payments
$0.00
Total interest paid
$0.00

What is a business line of credit?

A business line of credit is a revolving form of business financing. Unlike a traditional small-business loan — where you receive a lump sum of capital and repay it over a specific period of time, with interest — a business line of credit is more flexible.
With a business line of credit — also known as a commercial line of credit — you receive access to a set amount of capital and can draw funds as needed. You only pay interest on the funds that you draw. You then repay the funds over time, typically on a weekly or monthly schedule. You can continue to draw on your business credit line as often as you’d like, as long as you make payments on time and don’t exceed your credit limit.

How does a business line of credit work?

Business lines of credit are available from banks, credit unions and online lenders. Although funding amounts and repayment terms vary, lines of credit typically have lower maximums and shorter terms compared to traditional business term loans.

Business line of credit rates and fees

Current business line of credit rates can range from 10% to 99% APR. The interest rate you receive will vary based on your lender, credit score, financial history and time in business, among other factors.
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 to online lenders.
Depending on your lender, you may also have to pay fees on your line of credit, such as:
  • Origination fee. Fee charged to process your application. May be charged as a flat fee (e.g. $150) or a percentage of the line amount (e.g. 0.5% of the line amount).
  • Account maintenance fee. Monthly or annual fee associated with managing your account and keeping your business line of credit active. Also may be charged as a flat fee or a percentage of the line amount.
  • Draw fee. Fee charged each time you draw on your credit line. This fee is charged as a percentage (typically up to 2%) of the draw amount.
  • Inactivity fee. A lender may charge this flat fee if you don’t draw from your line of credit within a specified period of time. Fee amount typically depends on the terms of your agreement.

Pros and cons of business lines of credit

Pros

Good option for working capital, short-term expenses and emergency funding needs.

Only pay interest on funds you draw, not the total credit limit.

May be easier to qualify for than traditional term loans.

Can be used to build business credit.

Cons

Not suitable for large purchases or investments.

May include a variety of fees that can add to overall cost.

Often have shorter repayment terms and lower funding amounts than traditional term loans.


Where to get a business line of credit


How to apply for a business line of credit

To get a business line of credit, you can follow these steps:

1. Evaluate your financing needs

Determine why you need funding and how quickly you need it. If you’re looking for a working capital line of credit to cover payroll, for example, you may need financing as quickly as possible.
It's also important to determine how much capital you can afford. You can use a business line of credit calculator to estimate potential payments and interest costs.

2. Review business line of credit requirements

Evaluate your business's credentials — time in business, annual revenue, personal credit score — to determine what lines of credit you can qualify for.
If you’re looking for a secured business line of credit, you should also make sure you know what assets you’re going to put up as collateral and how much they’re worth.

3. Research and compare lenders

Once you have a better understanding of your financing needs and qualifications, you can research and compare small-business lenders to find the right option for your company.
Interest rates, borrowing limits and qualifications will vary by lender.

4. Gather required documents and apply

As part of your application, lenders will typically consider your credit and financial history — and ask you to provide documentation, such as:
  • Personal and business tax returns.
  • Personal and business bank statements.
  • Business financial statements (e.g., profit and loss statement or a balance sheet).
Depending on your lender, it may take anywhere from 24 hours to several weeks to complete the application and underwriting process.
» Need more details? Read our in-depth guide on how to get a business line of credit

Frequently asked questions

🏦 Curious about SBA loans?

Here’s an overview of how SBA loans work, the types of SBA loans that are available, what each loan type can be used for and how to get SBA financing for your small business.

Last updated on June 14, 2024

How Fundera by NerdWallet works

Getting a business loan can be challenging, and several factors — cost, speed, repayment schedule — can play a role in deciding which product is right for you. Let us help you through the process.

1. Fill out one simple application

Answer a few questions about your business to get personalized lending options. It’s free and won’t impact your credit score.

2. See your business loan options

It takes about three minutes to get options from our network of vetted small-business lenders. Compare interest rates and repayment terms to choose the best product for your needs.

3. Get your loan

If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.

Methodology

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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.