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 7 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 Small Business Advantage® Line of Credit | 5.0/5 Best for Bank working capital lines of credit | $50,000 | 680 | |
Fundbox - Line of credit | 5.0/5 Best for Working capital lines of credit for startups | $150,000 | 600 | |
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 | 625 | with Fundera by NerdWallet |
Chase - Business line of credit | Best for High-limit working capital lines of credit | $500,000 | 700 | |
American Express® Business Line of Credit | 5.0/5 Best for Working capital lines of credit for low-revenue businesses | $250,000 | 660 | |
Here are 7 working capital line of credit
Best for SBA working capital lines of credit
Best for Bank working capital lines of credit
Max Amount
$50,000
Min. Credit Score
680
Best for Working capital lines of credit for startups
Max Amount
$150,000
Min. Credit Score
600
Best for Unsecured working capital lines of credit
Best for Working capital lines of credit for bad credit
Best for High-limit working capital lines of credit
Max Amount
$500,000
Min. Credit Score
700
Best for Working capital lines of credit for low-revenue businesses
Max Amount
$250,000
Min. Credit Score
660
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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
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
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 Small Business Advantage® 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
36.00-99.00%
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 lien on your business assets and ask you to sign a personal guarantee.
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
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
625
Apr range
35.00-80.00%
with Fundera by NerdWallet
Our pick for
High-limit working capital lines of credit
Chase offers a credit line up to $500,000 that allows you to withdraw funds as needed, but you’ll typically need strong credit and at least two years in business to qualify.
Chase - Business line of credit
Max loan
$500,000
Min. Credit score
700
Our pick for
Working capital lines of credit for low-revenue businesses
American Express offers lines of credit up to $250,000, with flexible repayment terms. Borrowers will need strong personal credit and at least a year in business, but only $3,000 in monthly revenue to qualify.
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
What is a working capital line of credit?
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
Cons
How to choose the right working capital line of credit
1. Look at the qualification 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. Your ideal credit limit will vary based on your specific working capital needs, and how frequently you will repay your credit line. Understanding what you’re looking for can help you narrow down lenders.
- Interest rates and fees. The best interest rates and fees typically come from banks and credit unions and usually require strong personal credit and business revenue.
- Repayment terms. Make sure the available repayment terms work with your business model and the income you know you have coming in.
- Funding speed. Keep in mind that you may be taking multiple draws instead of just one lump sum, so the speed of funding won’t just matter up front. Considering the ease of the lender’s process can save you time and logistical headaches later on.
- Application process. Online lenders typically have streamlined application processes, making them ideal if you need to access capital fast. Though they can be cheaper, banks and CDFIs can take much longer to process applications.
- Customer support. With a line of credit, you may need to interact with your lender about your account more frequently than with a term loan, so look for multiple contact channels and good customer support ratings.
- Lender reputation. Look at reviews on sites like Trustpilot and the Better Business Bureau to make sure your lender is reputable and trustworthy.
3. Understand the application process
- 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.
