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 6 working capital line of credit
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA working capital lines of credit | $5,000,000 | 650 | with Fundera by NerdWallet |
Wells Fargo - Line of credit | 5.0/5 Best for Bank working capital lines of credit | $50,000 | 680 | Read Review |
Fundbox - Line of credit | 5.0/5 Best for Working capital lines of credit for startups | $150,000 | 600 | Read Review |
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Unsecured working capital lines of credit | $100,000 | 625 | with Fundera by NerdWallet |
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Working capital lines of credit for bad credit | $100,000 | 600 | with Fundera by NerdWallet |
Bank of America Cash Secured Line of credit | 5.0/5 Best for Secured business lines of credit | $0 | 670 | Read Review |
Here are 6 working capital line of credit
Best for SBA working capital lines of credit
Best for Bank working capital lines of credit
Best for Working capital lines of credit for startups
Best for Unsecured working capital lines of credit
Best for Working capital lines of credit for bad credit
Best for Secured business lines of credit
Our pick for
SBA working capital lines of credit
Part of the 7(a) loan program, SBA CAPLines provide funding for short-term working capital needs. Each of the four credit lines is designed for a specific purpose, including general working capital, seasonal slows, construction and contract orders.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Bank working capital lines of credit
Wells Fargo offers a revolving working capital line of credit in amounts up to $50,000. You may be able to qualify with less than two years in business — as long as you have good credit.
Wells Fargo - Line of credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
Working capital lines of credit for startups
You can get a business line of credit from Fundbox in amounts up to $150,000. This revolving credit line can be used for a range of short-term purposes — and you may be able to qualify with just six months in business.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
10.10-79.80%
Our pick for
Unsecured working capital lines of credit
There is no physical collateral required to access a working capital line of credit from OnDeck. The lender will take out a general line on your business assets and ask you to sign a personal guarantee.
OnDeck - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
39.90-77.90%
Our pick for
Working capital lines of credit for bad credit
Headway Capital provides fast working capital lines of credit for borrowers with a minimum credit score of 600 or higher. You can qualify within minutes and receive funds as soon as the next business day.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan
$100,000
Min. Credit score
600
Apr range
40.00-80.00%
with Fundera by NerdWallet
Our pick for
Secured business lines of credit
Companies with at least six months in business can use this Bank of America line of credit to cover operating expenses and establish business credit. Your credit line is secured by cash that you provide, and on-time payments can help you graduate to an unsecured line of credit option.
Bank of America Cash Secured Line of credit
Max loan
$0
Min. Credit score
670
What is a working capital line of credit?
- Rent.
- Payroll.
- Utilities.
- Inventory.
- Supplies.
- Emergency expenses.
- Employee training.
- Large order fulfillments.
What is working capital?
How a working capital line of credit works
Working capital loan vs. line of credit
Pros and cons of working capital lines of credit
Pros
- Flexible use. You can use a working capital line of credit for a wide variety of purposes, including paying rent, buying inventory or covering emergency expenses. These products are an ideal short-term financing option for bridging cash flow gaps, especially during seasonal changes.
- Revolving structure. Most working capital lines of credit are revolving. Unlike with a business term loan, you can draw from your credit line whenever you need access to funds and pay interest only on the money you borrow. And as long as you make your payments on time, you can continue to draw on the line, up to your limit.
- Can be quick to fund. Some online lenders can provide capital in as little as 24 hours, and most can within a few business days. Traditional lenders, like banks and credit unions, may be slower to fund.
Cons
- Can be expensive. Annual percentage rates (APRs) on working capital lines of credit can vary greatly — ranging from 10% to 80%. Depending on the lender, you may also face origination fees, account maintenance fees, draw fees or other additional charges. Although online lenders are fast to fund, they’re likely to charge higher rates as a result. Traditional lenders are more likely to offer the most competitive interest rates and terms.
- May have frequent payments. As a type of short-term financing, working capital lines of credit might require more frequent payments than some other business loan options. Although bank and SBA lenders may offer monthly payments, many online lenders will require a weekly repayment schedule.
How to get a working capital line of credit
1. Understand the requirements
- Personal credit score. In general, the stronger your credit score, the more financing options you’ll have available. Traditional lenders will usually require that you have fair to good credit — ideally a score of 650 or higher — to qualify for their products. Online lenders, on the other hand, are often more flexible. You may be able to qualify for a credit line with a personal credit score as low as 600.
- Time in business. Similar to your credit score, lenders prefer to see that you have an established business history. Some (but not all) banks will ask to see two or more years in business, whereas online lenders may require only six months or more.
- Annual revenue. Minimum annual revenue requirements can range, but overall, you should be able to show your lender a history of solid financial performance. It can also be helpful to present strong cash flow and sales projections.
2. Research and compare lenders
- Credit limits.
- Interest rates and fees.
- Repayment terms.
- Funding speed.
- Application process.
- Customer support.
- Lender reputation.
3. Gather your documentation and apply
- Personal information about you and any other business owners.
- Basic business information and paperwork.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements (e.g., profit and loss statement, balance sheet).
Find the right business loan
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.