Here are 10 business lines of credit
| Lender | NerdWallet Rating▼ | Loan amounts▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
Bank of America Business Advantage Unsecured Line of Credit | 4.7/5 Best for Bank business lines of credit | Undisclosed | 700 | Read Review |
SBA CAPLines of credit with Fundera by NerdWallet | Best for SBA lines of credit | $5,000,000 | 650 | with Fundera by NerdWallet |
Wells Fargo BusinessLine® Line of Credit | 4.9/5 Best for Unsecured business lines of credit | $150,000 | 680 | Read Review |
Bank of America Cash Secured Line of credit | 4.6/5 Best for Secured business lines of credit | Undisclosed | 670 | Read Review |
Fundbox - Line of credit | 4.9/5 Best for Business lines of credit for bad credit | $150,000 | 600 | Read Review |
Headway Capital - Line of credit with Fundera by NerdWallet | 4.7/5 Best for Startup business lines of credit | $100,000 | 625 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast business lines of credit | $250,000 | 625 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 4.7/5 Best for SBA lines of credit for startups | $50,000 | 680 | Read Review |
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Easy business lines of credit | $100,000 | 625 | with Fundera by NerdWallet |
American Express® Business Line of Credit | 4.6/5 Best for American Express customers | $250,000 | 660 | Read Review |
Here are 10 business lines of credit
Best for Bank business lines of credit
Best for SBA lines of credit
Best for Unsecured business lines of credit
Best for Secured business lines of credit
Best for Business lines of credit for bad credit
Best for Startup business lines of credit
Best for Fast business lines of credit
Best for SBA lines of credit for startups
Best for Easy business lines of credit
Best for American Express customers
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Our pick 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
Loan Amounts
Starting at $10,000
Min. credit score
700
Term length
Revolving with annual renewal
Interest rates
Starting at 10.75%
Time in business
24 months
Pros
- Revolving bank line of credit with competitive interest rates.
- No collateral required.
- No draw fees.
Cons
- Must be an established business with strong credit to qualify.
- Can be slow to fund.
- Must be an existing Bank of America customer to apply online.
Bank of America Business Advantage Unsecured Line of Credit
Loan Amounts
Starting at $10,000
Min. credit score
700
Term length
Revolving with annual renewal
Interest rates
Starting at 10.75%
Time in business
24 months
Pros
- Revolving bank line of credit with competitive interest rates.
- No collateral required.
- No draw fees.
Cons
- Must be an established business with strong credit to qualify.
- Can be slow to fund.
- Must be an existing Bank of America customer to apply online.
Bank of America offers business lines of credit in amounts of $10,000 or more that are well-suited for borrowers with strong credit.
Established businesses with strong credit can access this revolving line of credit, no collateral required.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: Two years.
- Minimum annual revenue: $100,000.
Our pick 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
Loan Amounts
Up to $5 million
Min. credit score
650
Term length
Up to 10 years
Interest rates
11.5-15%
Time in business
N/A
Pros
- Line of credit options for seasonal, working capital, building and contracting needs.
- Large maximum borrowing amounts.
- Competitive interest rates and repayment terms.
Cons
- Typically requires good credit and multiple years in business.
- Slow to fund.
- Collateral and/or down payment may be required.
SBA CAPLines of credit
Loan Amounts
Up to $5 million
Min. credit score
650
Term length
Up to 10 years
Interest rates
11.5-15%
Time in business
N/A
Pros
- Line of credit options for seasonal, working capital, building and contracting needs.
- Large maximum borrowing amounts.
- Competitive interest rates and repayment terms.
Cons
- Typically requires good credit and multiple years in business.
- Slow to fund.
- Collateral and/or down payment may be required.
The SBA CAPLines program offers four credit line options that can be used for a variety of business purposes.
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.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
Our pick 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
Loan Amounts
$10,000 to $150,000
Min. credit score
680
Term length
Revolving
Interest rates
10.25-18.25%
Time in business
24 months
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
Wells Fargo BusinessLine® Line of Credit
Loan Amounts
$10,000 to $150,000
Min. credit score
680
Term length
Revolving
Interest rates
10.25-18.25%
Time in business
24 months
Pros
- Bank line of credit with competitive interest rates.
- Revolving credit line with no scheduled annual review.
- No collateral required; no prepayment penalties.
Cons
- Must be an established business with strong credit to qualify.
- May take longer to fund than online lenders.
- Annual fee and inactivity fees may apply.
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.
This Wells Fargo line of credit offers competitive rates for businesses with at least two years in operation.
Qualifications:
- Minimum credit score: 680.
- Minimum time in business: Two years.
Our pick for
Secured business lines of credit
Companies with at least six months in operation can use Bank of America’s cash secured line of credit to build business credit.
Bank of America Cash Secured Line of credit
Loan Amounts
Starting at $1,000
Min. credit score
670
Term length
Revolving
Interest rates
Undisclosed
Time in business
6 months
Pros
- Available to borrowers with at least six months in business.
- No origination fee.
- Responsible spending can help you graduate to an unsecured credit line.
Cons
- Credit limit is based on the security deposit you provide.
- Must have a Bank of America checking or savings account to apply.
Bank of America Cash Secured Line of credit
Loan Amounts
Starting at $1,000
Min. credit score
670
Term length
Revolving
Interest rates
Undisclosed
Time in business
6 months
Pros
- Available to borrowers with at least six months in business.
- No origination fee.
- Responsible spending can help you graduate to an unsecured credit line.
Cons
- Credit limit is based on the security deposit you provide.
- Must have a Bank of America checking or savings account to apply.
Companies with at least six months in operation can use Bank of America’s cash secured line of credit to build business credit.
Bank of America’s Cash Secured line of credit can help startups cover working capital needs and establish business credit.
Qualifications:
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000 per year.
- Bank of America checking or savings account required.
- Minimum deposit of $1,000.
Our pick for
Business lines of credit 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
Loan Amounts
$1,000 to $150,000
Min. credit score
600
Term length
12 or 24 weeks
Interest rates
36-99%
Time in business
6 months
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with a minimum of six months in business.
- Low minimum credit score requirement.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
May fund quickly
Fundbox - Line of credit
Loan Amounts
$1,000 to $150,000
Min. credit score
600
Term length
12 or 24 weeks
Interest rates
36-99%
Time in business
6 months
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with a minimum of six months in business.
- Low minimum credit score requirement.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox offers quick funding of up to $150,000 for borrowers with a credit score of 600 or higher.
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $100,000.
May fund quickly
Our pick for
Startup business lines of credit
Headway Capital offers fast funding up to $100,000 for borrowers with at least six months in business.
Headway Capital - Line of credit
Loan Amounts
$5,000 to $100,000
Min. credit score
625
Term length
12, 18 or 24 months
Interest rates
35-80%
Time in business
6 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Headway Capital - Line of credit
Loan Amounts
$5,000 to $100,000
Min. credit score
625
Term length
12, 18 or 24 months
Interest rates
35-80%
Time in business
6 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Headway Capital offers fast funding up to $100,000 for borrowers with at least six months in business.
Headway Capital offers a fast and flexible line of credit for borrowers who may not qualify for more traditional options.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
Our pick for
Fast business lines of credit
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
Loan Amounts
$5,000 to $250,000
Min. credit score
625
Term length
26 weeks
Interest rates
20-50%
Time in business
12 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared to traditional lenders.
May fund quickly
Bluevine - Line of credit
Loan Amounts
$5,000 to $250,000
Min. credit score
625
Term length
26 weeks
Interest rates
20-50%
Time in business
12 months
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Requires personal guarantee.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared to traditional lenders.
Bluevine offers a business line of credit of up to $250,000 and can fund applications in as little as 24 hours.
Bluevine's 26-week line of credit provides fast working capital for short-term borrowing needs.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
- No bankruptcies in the past year.
May fund quickly
Our pick for
SBA lines of credit for startups
This SBA-backed line of credit offers up to $50,000 for startups with less than two years in business.
Wells Fargo Small Business Advantage® Line of Credit
Loan Amounts
$5,000 to $50,000
Min. credit score
680
Term length
5 years
Interest rates
13-15%
Time in business
Less than 24 months
Pros
- Bank line of credit (backed by the SBA) with competitive interest rates.
- No annual fee or prepayment penalties.
- Available to borrowers with less than two years in business.
Cons
- May take longer to fund than online lenders.
- Credit lines only available up to $50,000.
- Need a Wells Fargo checking account to access online bill pay.
Wells Fargo Small Business Advantage® Line of Credit
Loan Amounts
$5,000 to $50,000
Min. credit score
680
Term length
5 years
Interest rates
13-15%
Time in business
Less than 24 months
Pros
- Bank line of credit (backed by the SBA) with competitive interest rates.
- No annual fee or prepayment penalties.
- Available to borrowers with less than two years in business.
Cons
- May take longer to fund than online lenders.
- Credit lines only available up to $50,000.
- Need a Wells Fargo checking account to access online bill pay.
This SBA-backed line of credit offers up to $50,000 for startups with less than two years in business.
Wells Fargo offers an unsecured line of credit that’s designed for borrowers with less than two years in business.
Qualifications:
- Minimum credit score: 680.
- Available to borrowers with less than two years in business.
- Household personal liquid assets must be less than $500,000.
- Must meet standard SBA loan requirements.
Our pick 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
Loan Amounts
$6,000 to $100,000
Min. credit score
625
Term length
12, 18 or 24 months
Interest rates
35.90-84.90%
Time in business
12 months
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
- Requires personal guarantee.
May fund quickly
OnDeck - Line of credit
Loan Amounts
$6,000 to $100,000
Min. credit score
625
Term length
12, 18 or 24 months
Interest rates
35.90-84.90%
Time in business
12 months
Pros
- Fast access to working capital.
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Not available in North Dakota.
- May require frequent weekly payments.
- Interest rates can be high compared with traditional lenders.
- Requires personal guarantee.
OnDeck offers business lines of credit of up to $100,000 with a streamlined application process and fast funding times.
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past two years.
May fund quickly
Our pick 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
Loan Amounts
$2,000 to $250,000
Min. credit score
660
Term length
6, 12, 18 or 24 months
Time in business
12 months
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Personal guarantee required.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
American Express® Business Line of Credit
Loan Amounts
$2,000 to $250,000
Min. credit score
660
Term length
6, 12, 18 or 24 months
Interest rates
3% to 9% (6 months)
6% to 18% (12 months)
9% to 27% (18 months)
12% to 18% (24 months)
Time in business
12 months
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Personal guarantee required.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
Existing American Express customers can use their accounts to find out if they prequalify for this business line of credit.
The American Express® Business Line of Credit is a good option for business owners with fair credit who want access to working capital.
Qualifications:
- Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
- Must have started your business at least a year ago.
- Average monthly revenue of at least $3,000.
- All businesses are unique and are subject to approval and review.
What is a business line of credit?
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 a more flexible form of financing.
With a line of credit, you receive access to a set amount of capital — say, $150,000 — 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.
Secured vs. unsecured business lines of credit
A secured business line of credit requires you to put up assets such as inventory or property as collateral. If you fail to pay back the credit line, your lender could seize your assets. Unsecured business lines of credit, on the other hand, don’t require collateral, but some lenders may still require a personal guarantee or a lien on your business’s assets.
A personal guarantee gives a lender the right to go after your personal assets, like your house, if you default on a loan. A UCC lien is similar; a lender can seize your business assets if you haven’t repaid a loan.
When comparing lenders, ask whether they require collateral, a personal guarantee or a lien so that you can find the option that’s best for your business.
Business line of credit vs. credit card
Business credit cards are technically lines of credit, but they differ from traditional business lines of credit in several ways:
Business line of credit | Business credit card |
Higher credit limit. | Lower credit limit. |
Provides actual cash in your bank account when you make a draw. | Cards are used for purchases; you can get cash, but you’ll be charged a cash advance fee to do so. |
May be secured by collateral. | Can be secured by collateral, but not as common. |
Doesn’t typically include rewards. | Often have rewards or cash back for spending; rewards are typically related to business expenses. |
No interest-free period. | May include 0% interest promotion, which allows you to pay no interest on your balance for a specific time period after signing up for the card. |
Lower interest rates than credit cards. | Higher interest rates than lines of credit. |
Overall, business credit cards tend to work best for smaller ongoing expenses and for newer businesses without established finances, while business lines of credit work best for larger ongoing expenses and more mature businesses.
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.
- Account maintenance fee. Monthly or annual fee associated with managing your account and keeping your business line of credit active.
- Draw fee. Fee charged each time you draw on your credit line.
- Inactivity fee. A lender may charge this fee if you don’t draw from your line of credit within a specified period of time.
Minimum APR | Maximum APR | |
|---|---|---|
Bank of America Business Advantage Unsecured Line of Credit | 10.00%. | Undisclosed. |
Bluevine - Line of credit | 20 %. | 50 %. |
Chase Business Line of Credit | Variable rate based on the prime rate; specifics undisclosed. | Variable rate based on the prime rate; specifics undisclosed. |
Fundbox - Line of credit | 36 %. | 99 %. |
Headway Capital - Line of credit | 35 %. | 80 %. |
OnDeck - Line of credit | 35.9 %. | 84.9 %. |
SBA CAPLines of credit | 11.5 %. | 15 %. |
Wells Fargo BusinessLine® Line of Credit | 10.25 %. | 18.25 %. |
Where to get a business line of credit
Banks and credit unions
Banks and credit unions can offer different types of business credit lines, including secured and unsecured business lines of credit, as well as SBA lines of credit.
Although these lenders can offer business lines of credit with competitive interest rates, you’ll typically need to meet strict requirements to qualify. You’ll likely need to have 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, including annual and inactivity fees.
Online lenders
Online lenders, like Headway Capital and Fundbox, generally have more flexible business line of credit requirements compared to banks and credit unions. Some online lenders will work with startups or businesses with bad credit.
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 to get a business line of credit
To get a business line of credit, you can follow these steps:
1. Evaluate your financing needs
You’ll initially want to 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. On the other hand, if you want to keep a line of credit in your back pocket as an emergency fund, you may not be in such a rush.
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
Next, you'll want to evaluate your business's credentials — time in business, annual revenue, personal credit score — to determine what lines of credit you can qualify for.
Traditional lenders, like banks and credit unions, will likely have stricter qualifications, requiring multiple years in business and a strong credit history. Online lenders can be more lenient and some may be willing to work with startups and/or borrowers with bad credit.
At a minimum, therefore, you’ll want to be able to meet these business line of credit requirements:
- Credit score: 600 or higher.
- Time in business. Six months or more.
- Annual revenue. $50,000 or more.
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.
Ultimately, you can apply for a business line of credit through a bank, credit union, online lender, or even work with an online marketplace to submit a single application and compare offers from multiple lenders at the same time.
Interest rates, borrowing limits and qualifications can 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).
You may also be required to provide physical collateral or sign a personal guarantee.
Depending on your lender, it may take anywhere from 24 hours to several weeks to complete the application and underwriting process.
5. Review your loan agreement and get funds
Once you’ve been approved, your lender will send you a business line of credit agreement to review and sign. You’ll want to review it thoroughly to make sure you understand all of the terms and conditions.
You might ask a business advisor or attorney to look over the document as well. If you have any questions or concerns, you should reach out to your lender for clarification before signing.
After you’ve signed the loan agreement, you’ll be able to draw on your credit line as needed. Your lender may require you to make a minimum draw amount, $1,000, for example, so keep this in mind as you anticipate your financial needs.
Business line of credit calculator
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.
Monthly payment
$0.00
Total payments
$0.00
Total interest paid
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Find the right business loan
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on August 9, 2024
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 and 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.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
See Your Loan Options
Frequently Asked Questions
You may be able to qualify for a business line of credit from some online lenders with a minimum credit score of 600. You’ll typically need a stronger credit score — close to 700 or higher — to qualify for a credit line from a bank or credit union, however.
In general, the better your credit, the more options you’ll have available to you, and the lower interest rates you’ll be able to receive.
For newer businesses, it can be difficult to get a small-business line of credit. Traditional lenders, such as banks, typically require businesses to have several years of operations, revenue and strong finances to secure any type of financing. Some online lenders, however, may be willing to work with startups or businesses with bad credit.
Business line of credit funding times vary from lender to lender. Some online lenders can approve and fund applications as quickly as the same day — and in general, most of these companies can provide capital within a few business days.
With more traditional lenders, on the other hand, it may take anywhere from several days to several weeks for you to get a line of credit.
Business lines of credit may be available up to $500,000, but the amount that you can borrow ultimately varies based on your lender and qualifications. Online lenders typically have lower maximum funding amounts, whereas banks may not place specific limits on credit line funding. SBA lines of credit are available up to $5 million.