Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
---|---|---|---|---|---|---|---|
with Fundera by NerdWallet | Read expert review | Best for large funding amounts | $5,000,000 | 24 months | 10.25% | Up to 10 years | with Fundera by NerdWallet |
![]() | Read expert review | Best for new businesses | Undisclosed | 6 months | Undisclosed | Undisclosed | |
![]() | Read expert review | Best for established businesses | $3,000,000 | 24 months | 7.75% | 12 months | |
![]() | Read expert review | Best for low interest rates | Undisclosed | 24 months | Undisclosed | Undisclosed |
best secured business lines of credit: More details
U.S. Small Business Administration: Best for large funding amounts
SBA CAPLines offer up to $5 million — more than other secured credit line options. You can choose from four lines of credit, each designed for a specific purpose, including working capital, seasonal slows, construction and contract orders.
SBA CAPLines of credit
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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.
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.
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Bank of America: Best for new businesses
Companies with at least six months in operation can use Bank of America’s secured credit line to establish business credit. Timely payments can help borrowers graduate to an unsecured line of credit option.

Bank of America Business Advantage Cash Secured Line of Credit
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.
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.
Wells Fargo: Best for established businesses
Wells Fargo’s secured business line of credit is available in amounts up to $1 million. This credit line is designed for established, high-revenue companies that need to finance larger working capital needs.

Wells Fargo Prime Line of Credit
Pros
- High maximum credit line amount.
- Competitive interest rates and repayment terms.
Cons
- Can’t apply online.
- Origination fee charged at opening and annual renewal.
Pros
- High maximum credit line amount.
- Competitive interest rates and repayment terms.
Cons
- Can’t apply online.
- Origination fee charged at opening and annual renewal.
Bank of America: Best for low interest rates
Bank of America’s secured line of credit can be secured by a blanket lien on business assets or a certificate of deposit (CD). Interest rates are competitive, but you’ll need at least two years in business and a minimum annual revenue of $250,000 to qualify.

Bank of America Business Advantage Secured Line of Credit
Pros
- Bank line of credit with competitive interest rates.
- Lender reports to business credit bureaus.
- Bank of America’s Preferred Rewards for Business program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- High annual revenue requirement.
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
Pros
- Bank line of credit with competitive interest rates.
- Lender reports to business credit bureaus.
- Bank of America’s Preferred Rewards for Business program can offer interest rate discounts and other perks.
Cons
- Can be slow to fund.
- High annual revenue requirement.
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
What is a secured business line of credit?
💬 Business Lines of Credit: Only pay interest on what you use
Business lines of credit are a great option for business owners who are looking for flexible funding. Lines of credit can cover unexpected expenses and allow recipients to only pay interest on what they borrow.
By connecting businesses with trusted lenders in our network, our in-house sales experts have helped secure $947 million in lines of credit for borrowers. Get started today and let us do the heavy lifting for you.
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— Mike Ross, NerdWallet Business Loans Team Lead
How does a secured business line of credit work?
Unsecured vs. secured business line of credit
Pros and cons of a secured business line of credit
Pros
- Providing collateral offsets some of a lender’s risk, which may help you qualify for more competitive interest rates and terms.
- Offering collateral can help strengthen your application, especially if you’re a startup or have poor credit history.
Cons
- A lender will typically require documentation about the asset you’re pledging as collateral, and possibly conduct an appraisal, which can slow the application process.
- You may be at risk of losing your assets if you fail to repay your line of credit.
Why you might choose a secured business line of credit
- You have collateral. If you have business assets like vehicles, large equipment, commercial real estate or even cash, you may consider using it to make your credit application more attractive to lenders.
- You want more competitive rates and terms. Securing your line of credit with valuable collateral reduces a lender’s risk, which can lead to lower interest rates and more favorable repayment terms for your business.
- You’re looking to build business credit. If your lender reports to business credit bureaus, secured business lines of credit can be a great way to
, though you’ll need to make sure you use the line responsibly and make on-time payments. Established business credit can help your business access more capital, with more affordable rates and terms in the future.build business credit - You want flexible financing. Securing a business line of credit can allow you to access a flexible form of financing. Having a line of credit means you can access capital fairly quickly as needed, but you only pay interest on the amount you draw.
Minimum requirements for a secured business line of credit



Where to get a secured business line of credit
Banks and credit unions
SBA lenders
Online lenders

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