Best Startup Business Lines of Credit of 2025
Startup business lines of credit can help new companies manage cash flow or cover short-term expenses. Interest rates may run high, however.
| 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 working capital | $5,000,000 | 24 months | 10.5% | Up to 10 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for instant access to preapproved funds | $100,000 | 12 months | 40% | 12 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for bad credit | $750,000 | 12 months | 42.08% | 6 to 12 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for low-revenue businesses | $100,000 | 6 months | 35% | 12 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for fast approval and access to funds | $250,000 | 3 months | 36% | 3 to 6 months | with Fundera by NerdWallet |
 | Read expert review | Best for low interest rates | $50,000 | Undisclosed | 12% | 5 years | |
 | Read expert review | Best for secured startup business lines of credit | Undisclosed | 6 months | Undisclosed | Undisclosed |
business lines of credit for new businesses: More details
U.S. Small Business Administration: Best for working capital
Working CAPLines, one of the four SBA CAPLines, are available to small businesses that have accounts receivable and/or inventory. Funds can be used to finance a wide variety of short-term expenses.
SBA CAPLines of credit
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 10 years
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.
with Fundera by NerdWallet
OnDeck: Best for instant access to preapproved funds
OnDeck offers business lines of credit for startups with 12 months or more in business. It may take up to four days to underwrite and approve your initial application. Once you’ve been approved, however, OnDeck can authorize line of credit draws between $1,000 and $10,000 instantly. Instant approval is available 24/7, so you can access immediate funding at any time of day.
May fund quickly
OnDeck - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 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.
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.
with Fundera by NerdWallet
Backd: Best for bad credit
Backd offers credit lines for startups with 12 months or more in business; it accepts borrowers with credit scores of 600 or higher.
Backd - Line of credit
with Fundera by NerdWallet
Max loan amount
$750,000
Min. credit score
600
Term length
6 to 12 months
Pros
- Fast access to funds.
- Simple application with minimal documentation required.
- Large maximum funding amounts.
- Accessible to startups and borrowers with bad credit.
Cons
- High annual revenue requirement.
- Requires weekly repayment.
- Charges a draw fee.
- Interest rates can be high compared with traditional lenders.
Pros
- Fast access to funds.
- Simple application with minimal documentation required.
- Large maximum funding amounts.
- Accessible to startups and borrowers with bad credit.
Cons
- High annual revenue requirement.
- Requires weekly repayment.
- Charges a draw fee.
- Interest rates can be high compared with traditional lenders.
with Fundera by NerdWallet
Headway Capital: Best for low-revenue businesses
Headway Capital is a small-business lender specializing in lines of credit that range from $5,000 to $100,000. You may be able to qualify with just $50,000 in annual revenue and six months in business.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 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.
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.
with Fundera by NerdWallet
Fundbox: Best for fast approval and access to funds
Fundbox is an online lender that offers lines of credit up to $150,000. It can provide a decision as fast as the same day and fund within 24 hours. You’ll need to have at least three months in business, a 600 minimum credit score and $30,000 in annual revenue to qualify.
May fund quickly
Fundbox - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
600
Term length
3 to 6 months
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Low minimum credit score, time in business and annual revenue requirements.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- Weekly repayments required over a short term (maximum of 24 weeks).
with Fundera by NerdWallet
Wells Fargo: Best for low interest rates
Wells Fargo’s Small Business Advantage line of credit is available for startups under two years old. There is no annual fee, and line of credit amounts range from $5,000 to $50,000. Interest rates start as low as the prime rate plus 4.5%.
Wells Fargo Small Business Advantage® Line of Credit
Max loan amount
$50,000
Min. credit score
680
Term length
5 years
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.
- Does not charge an origination fee.
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.
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.
- Does not charge an origination fee.
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.
Bank of America: Best for secured startup business lines of credit
Bank of America offers a cash secured line of credit for businesses in operation for a minimum of six months. Your credit limit is the amount of cash you put down as a security deposit, which is refundable whenever you decide to close your account. This is a good option for businesses looking to build credit and work toward unsecured options.
Bank of America Business Advantage Cash Secured Line of Credit
Max loan amount
Undisclosed
Min. credit score
670
Term length
Undisclosed
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.
Concerned about tariffs?
Many small-business owners are under increased economic stress and uncertainty following the latest tariff announcements. NerdWallet is here to help you find answers for whatever you're looking for. Here are some resources to help you get started:
- Need emergency funding? Consider a
business line of credit - Looking for fast access to working capital? Discover the
best working capital loans - Want tips on how to mitigate the impact of tariffs? Read
our guide
What is a startup business line of credit?
A business line of credit
Startup business lines of credit are available to companies in the early stages of growth. For lending purposes, a “startup” typically refers to a business with less than two years in operation.
Use our business line of credit calculator to compare potential costs and payments on different offers:
Pros and cons of a startup business line of credit
Pros
✅ Flexible form of financing.
✅ Access to fast cash.
✅ Build business credit.
Cons
❌ Can be expensive.
❌ Limited options.
❌ Personal financial risk.
Want to consider other options?
If you’re not sure that a business line of credit is right for your new business, here are some alternative options for startup funding
- If you want an option to build your business credit history, consider a
startup business credit card. - If you have strong personal finances, consider a
personal business loan - If you don’t want to take on any additional debt, consider
startup business grants
How to get a startup business line of credit
1. Evaluate your financing needs
Determine how much business capital business line of credit calculator
2. Review your qualifications
Lenders typically use similar criteria to underwrite your line of credit application, including personal credit score, annual revenue and time in business. To qualify for a startup business line of credit, it’s helpful to have:
- Credit score: 600 or higher.
- Annual revenue: $50,000 or more (Or around $4,167 per month).
- Time in business: Six months or more.
Offering assets to secure your business line of credit
3. Research and compare lenders
Most startup business lines of credit are available from online lenders
Be wary of any lender that promises “guaranteed approval” or makes other claims that seem too good to be true. These could be predatory companies trying to take advantage of your business.
4. Gather your documents and apply
You may need to include any of the following in your application to get a business line of credit:
- Business registration documents.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements, such as a profit and loss statement and balance sheet.
Some online lenders allow you to complete your line of credit application by connecting your financial accounts — like a business checking account or accounting software — to their platform in order to expedite the underwriting process.
Whether you connect your financial accounts or upload financial documents, the more information you can provide that shows your business’s ability to repay the debt, the more likely you are to qualify for a startup line of credit with the best possible business loan rates
MORE NERDY PERSPECTIVE
A business line of credit can be a great tool for growth during a startup’s early stages
"I used to work in small-business lending and I’ve seen firsthand how a line of credit can serve as a safety net for newer businesses that are operating and earning revenue, but still getting up and running on certain aspects of the business.
Even with careful planning, it’s not always possible for businesses to anticipate every need when applying for initial capital, so having a credit line tucked away for unexpected expenses or opportunities is crucial during those early stages of growth.
Even if you pay an account maintenance fee on a business line of credit, it can be safer and less expensive than risky emergency funding options if you are caught off guard."
Where to get a startup business line of credit for a new business
Online lenders
Online lenders can be good options for newer businesses, depending on the lender your business may only need six to 12 months in operation to qualify. Typically, online lenders have streamlined application processes and can provide financing within 24 hours.
Compared with bank lenders, online lenders are less likely to require physical collateral to secure a line of credit, but they may still back the line with a personal guarantee or Uniform Commercial Code lien
SBA lenders
SBA lines of credit are available through SBA lenders CAPLines
Seasonal CAPLines can be an option for a business line of credit for new businesses that have seasonal sales and have been in operation for at least 12 months. The line can be used to supplement cash flow when a business’s sales slow during the offseason or when expenses for labor and supplies increase before the start of a new season.
Traditional banks
Startups usually don’t qualify for business lines of credit offered by banks and credit unions. Traditional lenders generally require that borrowers have two or more years in business for both secured and unsecured business lines of credit
There are exceptions, however. Both Wells Fargo and Bank of America offer a line of credit for businesses with less than two years in operation.
How to compare startup business lines of credit
The best startup business line of credit will likely be the most affordable one you can qualify for that meets your needs. As you compare your options, consider the following factors:
- Borrowing limits. Some lenders may offer lines of credit up to $250,000, whereas others will only offer up to $50,000. You’ll want to know how much funding you need when looking at your options. Taking less than you need can place a burden on your business’s cash flow, and can make you vulnerable to
risky loan stacking practices larger funding amounts - Repayment schedule. Startup business lines of credit can have daily, weekly or monthly repayments. Frequent payments can be harder to manage when you’re just starting out and cash flow is tight. Make sure that you can afford the potential repayment schedule.
- Interest rates. Rates on business lines of credit range anywhere from 10% to 99% . To qualify for the best rates, it’s helpful to have good credit and strong finances.
- Fees. Lenders may charge draw fees, monthly maintenance fees,
origination fees - Collateral. Although not all startup business lines of credit require collateral, providing collateral (or offering more than needed) may help you qualify, especially if some of your credentials aren’t where you’d like them to be.
- Funding speed. Online lenders typically provide the fastest access to funds, although they charge higher interest rates. If you can wait for bank or SBA funding (and can qualify), you'll likely save on interest costs.
- Lender reputation . It can be useful to read online reviews to get a better sense of what it’s like working with a particular
small-business lender - Building business credit. If you can, prioritize lenders that report to major credit bureaus so you can build your business credit. This is especially important as a newer business. Just like personal credit, strong business credit can help you get approved for financing and more favorable terms in the future.
Frequently asked questions
Can a startup business get a line of credit?
Can you get a business line of credit for a startup without revenue?
How do I get an unsecured business line of credit?
Last updated on March 19, 2025
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.
Get started
Fill out one simple application
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
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.
To come up with our list of the best startup business lines of credit, we selected lenders with a minimum time in business requirement of less than two years.
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 editorial guidelines.
