How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 10 business lines of credit
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Bank of America Business Advantage Unsecured Line of Credit | 5.0/5 Best for Bank business lines of credit | Undisclosed | 700 | |
SBA CAPLines of credit with Fundera by NerdWallet | Best for SBA lines of credit | $5,000,000 | 650 | with Fundera by NerdWallet |
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 |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Startup business lines of credit | $100,000 | 625 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 5.0/5 Best for SBA lines of credit for startups | $50,000 | 680 | |
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 |
Bank of America Cash Secured Line of credit | 5.0/5 Best for Secured business lines of credit | Undisclosed | 670 | |
Wells Fargo BusinessLine® Line of Credit | 5.0/5 Best for Unsecured business lines of credit | $150,000 | 680 | |
Fundbox - Line of credit | 5.0/5 Best for Business lines of credit for bad credit | $150,000 | 600 | |
American Express® Business Line of Credit | 5.0/5 Best for American Express customers | $250,000 | 660 | |
Here are 10 business lines of credit
Best for Bank business lines of credit
Max Amount
Undisclosed
Min. Credit Score
700
Best for SBA lines of credit
Best for Easy business lines of credit
Best for Startup business lines of credit
Best for SBA lines of credit for startups
Max Amount
$50,000
Min. Credit Score
680
Best for Fast business lines of credit
Best for Secured business lines of credit
Max Amount
Undisclosed
Min. Credit Score
670
Best for Unsecured business lines of credit
Max Amount
$150,000
Min. Credit Score
680
Best for Business lines of credit for bad credit
Max Amount
$150,000
Min. Credit Score
600
Best for American Express customers
Max Amount
$250,000
Min. Credit Score
660
I'M INTERESTED IN:
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
Max loan
Undisclosed
Min. Credit score
700
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
with Fundera by NerdWallet
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
with Fundera by NerdWallet
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
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.90-84.90%
with Fundera by NerdWallet
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
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
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
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
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
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
with Fundera by NerdWallet
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
Max loan
Undisclosed
Min. Credit score
670
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
Max loan
$150,000
Min. Credit score
680
Apr range
10.25-18.25%
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
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
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
Max loan
$250,000
Min. Credit score
660
What is a business line of credit?
How does a business line of credit work?
Secured vs. unsecured business lines of credit
Business line of credit vs. credit card
- Credit limit. Business lines of credit typically have higher credit limits than business credit cards.
- Functionality. Whereas credit cards are used for purchases, business lines of credit provide actual cash in your bank account when you make a draw. You can get cash from a credit card, but you’ll be charged a cash advance fee to do so.
- Collateral. Some lenders require you to secure your business line of credit with collateral. Business credit cards can be secured by collateral, but it’s not as common.
- Rewards. Business lines of credit don’t usually include rewards, whereas business credit cards often offer rewards or cash back for spending. Rewards are typically related to business expenses.
- Interest rates. Business lines of credit generally offer lower interest rates than credit cards. Business credit cards, however, may include a 0% interest promotion, which allows you to pay no interest on your balance for a specific period after signing up for the card. Lines of credit don’t offer this feature.
Business line of credit rates and fees
🤓 Nerdy Tip
To get the best business line of credit rates, you can build your personal and business credit scores, provide collateral to secure your line and compare offers from several lenders.- 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.
Minimum APR | Maximum APR | |
---|---|---|
Bank of America Business Advantage Unsecured Line of Credit | 10.00%. | Undisclosed. |
Bank of America Cash Secured Line of credit | Undisclosed. | Undisclosed. |
Bluevine - Line of credit | 20 %. | 50 %. |
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 %. |
Wells Fargo Small Business Advantage® Line of Credit | 13 %. | 15 %. |
Pros and cons of business lines of credit
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.
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
Banks and credit unions
Online lenders
How to get a business line of credit
1. Evaluate your financing needs
2. Review business line of credit requirements
- Credit score: 600 or higher.
- Time in business. Six months or more.
- Annual revenue. $50,000 or more.
3. Research and compare lenders
4. Gather required documents and apply
- Personal and business tax returns.
- Personal and business bank statements.
- Business financial statements (e.g., profit and loss statement or a balance sheet).
5. Review your loan agreement and get funds
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.
Find the right business loan
Frequently asked questions
Methodology
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.