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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 best working capital lines 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 | 4.7/5 Best for Bank working capital lines of credit | $50,000 | 680 | Read Review |
Fundbox - Line of credit | 4.9/5 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 | 4.7/5 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 | Read Review |
American Express® Business Line of Credit | 4.6/5 Best for Working capital lines of credit for low-revenue businesses | $250,000 | 660 | Read Review |
Here are 7 best working capital lines 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 High-limit working capital lines of credit
Best for Working capital lines of credit for low-revenue businesses
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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
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Qualifications:
- For-profit U.S. business.
- Unable to access credit on reasonable terms from nongovernment sources.
- Financial qualifications determined by individual lender.
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
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.
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.
Wells Fargo Small Business Advantage® Line of Credit
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.
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.
Qualifications:
- Minimum credit score: 680.
- Available to borrowers with less than two years in business.
- Household personal liquid assets must be less than $500,000.
- Must meet standard SBA loan requirements.
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
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with a minimum of six months in business.
- Low minimum credit score requirement.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Fundbox - Line of credit
Pros
- Financing available within one business day after approval.
- Simple application with minimal documentation required.
- Startup-friendly — accepts borrowers with a minimum of six months in business.
- Low minimum credit score requirement.
- No prepayment penalties, account maintenance fees or inactivity fees.
Cons
- Rates are high compared with traditional banks.
- May require personal guarantee.
- Weekly repayments required over a short term (maximum of 24 weeks).
Qualifications:
- Minimum credit score: 600.
- Minimum time in business: Six months.
- Minimum annual revenue: $100,000.
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
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.
- Requires personal guarantee.
OnDeck - Line of credit
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.
- Requires personal guarantee.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: One year.
- Minimum annual revenue: $100,000.
- No bankruptcies in the past two years.
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
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.
Headway Capital - Line of credit
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.
Qualifications:
- Minimum credit score: 625.
- Minimum time in business: Six months.
- Minimum annual revenue: $50,000.
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
Pros
- Bank credit line with competitive interest rates.
- Large maximum line limit of $500,000.
- Can apply online for up to $250,000.
Cons
- Must have a Chase Business Banking account to apply online.
- Not available in Alaska and Hawaii.
- Annual fee may apply.
- Limited information on terms and fees available online.
Chase - Business line of credit
Pros
- Bank credit line with competitive interest rates.
- Large maximum line limit of $500,000.
- Can apply online for up to $250,000.
Cons
- Must have a Chase Business Banking account to apply online.
- Not available in Alaska and Hawaii.
- Annual fee may apply.
- Limited information on terms and fees available online.
Qualifications:
- Minimum credit score: 700.
- Minimum time in business: Two years with some flexibility.
- Minimum annual revenue: Not disclosed
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
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Personal guarantee required.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
American Express® Business Line of Credit
Pros
- Streamlined application process with minimal paperwork.
- Financing from $2,000 to $250,000 available.
- Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
- Monthly repayment schedule (as opposed to daily or weekly).
- No prepayment penalties, account maintenance fees or draw fees.
Cons
- Must have online checking or PayPal account to verify cash flow.
- Personal guarantee required.
- Complex monthly fee structure makes it difficult to compare costs to other lenders.
Qualifications:
- Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
- Must have started your business at least a year ago.
- Average monthly revenue of at least $3,000.
- All businesses are unique and are subject to approval and review.
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.
- 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.
- 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.
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).
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.